Guest ArrowMatt Posted May 30, 2003 Posted May 30, 2003 Hi all. We have a participant that is requesting a combination payment of his ESOP - rollover & direct pay. Question is he has both pre-1987 and post 1986 shares. As you can image, the cost basis for the shares pre-1987 is lower. Which shares should be used on the direct pay? Is there a standard way of issuing shares? FIFO, LIFO? Thanks.
QDROphile Posted May 30, 2003 Posted May 30, 2003 Why don't you let the participant identify the shares?
Kirk Maldonado Posted May 30, 2003 Posted May 30, 2003 My recollection (although it was a number of years ago) is that the participant has the same basis in all of the shares that are distributed from the plan (even though the plan may have a different basis in the shares while it holds them). If that is right, then it doesn't matter which shares are distributed. Kirk Maldonado
Guest Harry O Posted May 30, 2003 Posted May 30, 2003 Kurt is correct. There is a 1950s revenue ruling to that effect.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now