How to record an employer stock nua transaction
I was a participant in an employer 401k that included company stock. I elected to terminate (and roll over certain portions of the plan to an IRA rollover acct) in order to get a "stepped up" basis in certain of the employer stock. For example, assume my plan has $1,000 in assets, including $250 of company stock with a cost basis of $30. The IRS will allow me to terminate the plan, and roll over the non-company stock into an IRA, and the company stock into a normal brokerage account (taxable). The benefit is that I will get a "stepped up basis in the company stock equal to the fmv of the stock on the date of termination of the plan, but only by paying taxes on the difference between my basis ($30) and the fmv of the stock ($250). Thereafter, whenever I sell the stock, I will only pay cap gain taxes on the diff between the sales price and the $250, and not ordinary income taxes on the total received. Anyone have any ideas on how to record such a transaction(s)? Q17 Premier, W10.
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