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Distributions from a 401k with ER stock. (NUA).


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Guest Denise Murphy
Posted

Client takes an inservice withdrawal in 1999 (partial distribution-cash). Three years down the road the client retires and wants to use the NUA stratagy on the ER stock in the plan. To use NUA, the employee must take a lump sum distribution. Is NUA still available since the client took a previous in-service withdrawal?

Posted

Should be o.k. As long as the first distribution after his triggering event (separation from service in this case) is a lump sum, he is o.k.

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