I am searching for information about how to model a NUA (net unrealized appreciation) stock distribution.

Any suggestions about how to model a NUA (net unrealized stock distribution). I would like to know the impact of using post-tax dollars in my thrift fund to enable me to remove stock by exchanging the cost basis with post-tax contributions without a taxable event during the fund liquidation. How can this be modeled? I did a search on NUA and Net Unrealized without turning up any matches. Surely someone has attempted to model this.

Comments

I can't offer any advice on how to do this in ESP but it might involve manual calculations outside ESP, then entering certain amounts as special receipts or special expenditures.

This tool may help arrive at those values outside ESP. I just found that calculator when learning what an NUA is. (I've always worked in non-profit. Employer's stock was never part of my retirement plan.) Anyway, the site has a lot of other useful calculators, unrelated to NUAs.

http://www.dinkytown.net/java/StockRollover401k.html

Chris

Thanks. I have seen comments in the Question Forum about how to model NUA before, but since they have gone to the new format I can no longer find them. I wonder if all the old content is lost?

It's lost to users but available to Dan, who manages the forum. Perhaps he'll retrieve some and post them here.

Dan Royer's picture

I found this; not sure if it's of any help:

metalmike at kingwoodcabl wrote:I understand that the way to treat a NUA distribution of stock from your retirement plan is to add it as a special receipt. It looks like this is then transferred to the Regular Assets account. A couple of questions on this.

1. How do you make sure this is treated as stock with long term capital gains tax basis?
2. What is the withdrawal rule on this relative to your retirement account?
3. How can I force this to be withdrawn first, i.e., before my retirement account?
:?
1. Make sure you select "Taxable at capital gains rates" when you enter the special receipt.

2. I'm not sure, perhaps Larry will chime in.

3. Good question.

Best,

Dick Munroe

Dan Royer's picture

I'd be glad to ask Larry to come comment.