NUA on 401k

Have client who has two stocks. GE Verona stock and GE common stock.

Verona stock has a cost basis of $3104 and value of $11,388

GE common stock has cost basis of $12,343 and value of $28,857

capital gains would be short term or long term

Questions:

  • Not asking advice if NUA should be done but asking would the NUA be something I should check into?
  • The 401k company stated that since he has taking RMD’s for 2023, 24 and 25, this disqualifies the NUA, is this correct?

Thank you,

Douglas



The plan administrator is correct that the intervening distributions since the last triggering event disqualifies a lump sum distribution for NUA purposes.

The cost basis of almost 40% of total value would not have been very attractive for NUA anyway.

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