Distribution of Employer Securities

[bdeancpa]

If a participant receives a lump sum distribution that includes employer securities and rolls the distribution over to an IRA, I assume they loss the ability to withdraw the securities from the IRA at a later time and postpone any tax on the net unrealized appreciation. Is my understanding correct? If not, can anyone give me a citation for some authoratative guidance.

Thanks in advance for any help you can give.

[QDROphile]

You are correct. The rule on unrealized appreciation applies only to distrbutions from the employer's plan. 402(e)(4)