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Jack( my dear husband) can take his 401K if he terminates his employment with his present employer OR he can leave it in the plan. Jack wants to stop working. His 401K consists of company stock(very big company) and company mutual fund shares. We are looking at the option of cashing in the mutual fund shares AND receiving the company stock, in a lump-sum distribution. The distribution would be approximately $148,000. We would like to take advantage of the NUA concept for the company stock. I tried to calculate the ordinary income taxes on the cost basis of the company stock. We were told it is $42.14 per share by the company rep. If I figured it correctly, the cost basis is about $104,500!! OUCH!! Basically, we want to pay the lowest taxes possible on this distribution. We can just leave it in the plan and make partial distributions, all subject to ordinary income tax rates. We will need these monies to live on until I get Social Security and Jack gets his pension. Ideas, suggestions, please?

Liz Pearce
Homesick Texan Living in SE Florida
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