NUA stock in standalone taxable brokerage account? | Ed Slott and Company, LLC

NUA stock in standalone taxable brokerage account?

Assuming all the conditions have been made for an NUA transfer of company stock out of a retirement account into a taxable brokerage account, are there any issues with the company stock being in a taxable account alongside other holdings? Or should that NUA stock be placed in its own standalone account by itself?

No reason a separate account is needed. When the company stock is distributed, inform the brokerage account custodian which shares are NUA shares, and what your cost basis is per share. Then when you finally sell the shares, the broker will report the correct cost basis and holding period.

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.