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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121097  
Subject: Re: NUA Date: 10/25/2004 7:18 PM
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Hello Hal:

Generally speaking, a stock needs to be worth 2x to 2.5x the trustees basis for the NUA election to pay off. Just a word of caution, there are rules to getting this done right so I would advise seeking some professional help. Secondly, there is no way to make the NUA election (which does require that a taxable event tax place) and at the same time roll those shares into an IRA. Thirdly, based on your age you would will have to pay regular income tax at your marginal rate (not your nominal rate) on the trustee's basis in those shares. Lastly, you may or may not have to pay the 10% surtax based on the facts & circumstances of your disability.

TheBadger
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