HowdyDoodle1
Returning Member

Net Unrealized Appreciation (NUA)

I am considering whether to take a distribution of company stock in my 401K and transfer to a brokerage account then report net unrealized appreciation.  I was trying to model this in Turbotax assuming I will receive a 1099R.  For example purposes, I entered the Gross Distribution ($100,000) in Box 1.  Entered taxable amount (basis) in Box 2 for $40,000.  Entered $60,000 in Box 6 for NUA.

TurboTax should only be taxing me for the taxable amount of $40,000.  Instead it is taxing me for the Gross Distribution of $100,000.  

 

I would appreciate if someone could advise me as to the proper way to fill out the form.  As I do not have an actual 1099-R form in hand, it's guesswork for me at this point.  Thank you.