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The spread between your basis in the company stock & its current value is insufficient to warrant direct distribution of those shares. Said another way, you will end up paying more tax using the NUA exception. Instead, you probably need to look at the §72(t)(2)(A)(iv) "substantially equal periodic payments" exception which causes the distributions to be taxed as ordinary income; but, the 10% surtax is avoided.

TheBadger
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