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Hi Rosesmeller,
To quote:
"Otherwise your taxes on the distribution are based on the value when the distribution is made - there's no difference whether you get shares or money. If you keep the shares, your basis for a future sale will be the value when they were distributed - the same amount you pay taxes on now."

I don't believe the above statement is correct. If one takes an "in kind" distribution of the stock from a 401k, the tax is on the cost basis of the stock, not the value at time of distribution. The NUA (net unrealized appreciation) is taxed at the time the stock is subsequently sold at the appropriate capital gain tax rate.

Respectfully, gopete
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