Message Font: Serif | Sans-Serif
No. of Recommendations: 0

Thanks for sharing your experience. This is why I am very cautious about my retirement meny. In my case, there are several options mentioned by HR: A) Roll over to my new company; B) Roll over to IRA; C)early distribution. In either A or B, company stock portion needs be cashed out and lose cost basis. NUA(Net Unrealized Appreciation) was mentioned but HR person is shy on how it can be done and only mentioned to consult a tax advisor. So I am not sure if I can do a seperate distribution on stock portion using NUA strategy while at same time roll the rest over into an IRA.

I found some information about NUA strategy here:

It is mentioned here, the tax and penalty are only assessed on the cost basis, which in my case is only 3% worth of stock portion. Though I am not sure this is indeed true.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.