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Patzer,

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:

http://www.fpanet.org/journal/articles/2004_Issues/jfp0204-art7.cfm

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.

Best,

Bin
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