NUA 10% early withdraw penalty is on the cost basis or capital gain or both
Different result from web search and ChatGPT and from two different CPAs even: NUA 10% early withdraw penalty is on the cost basis or capital gain or both?
Can someone please give a formative answer for an “ordinary” case? (or refer to the right IRS document if you don’t like to sound formative)
Permalink Submitted by Alan - IRA critic on Sat, 2024-02-24 02:12
It’s only on the taxable cost basis (amount in Box 2a of the 1099R), but in many cases the participant is exempt due to being over 59.5 or having separated from service at age 55 or later.