Employer's stock NUA - clarifiacation.

[Guest kazand]

Mary Kay ,

Thank you very much for your reply. I wonder if you could clarify a couple of points:

1. If the basis of the employee's contributions is not reporetd on the form, is it at all possible to figure it out so the benefit isn't lost?

2. Not sure how you got $20K cost & $80K NUA in the example - my example included $100K basis and a

$400K NUA ($500K total value of 401K), in which case,

I understand, the $100K is originally taxed as ordinary income and then recoverd upon the stock sale and the $400K is taxed at 20% LTCG rate.

Thanks again for your great help.