Thankyou RobertB4444
Perhaps you can provide supporting information for your statements "your shares were supposed to be placed into a retirement account, not a brokerage account" and "you lost the tax advantage to the NUA".
I believe the following to be correct. Your reply is invited.
There are two options when transferring from a 401k. Transfer to an IRA or transfer to brokerage account using Net Unrealized Appreciation. Search YouTube for NUA and you will see numerous videos explaining how it works.
One does not lose the NUA by transferring to a brokerage account as supported by the 1099-R I received for the transfer. Box 6 clearly notes it is a NUA.
I did pay the tax due on the original cost basis noted on the 1099-R.
You note "you would only have to pay capital gains tax on the distributions from the retirement account". My understanding is all distributions from an IRA are taxed at Ordinary tax rates. Plus you are subject to RMD's each year. Assuming I am correct, this would have been a disaster.
I do agree that the step-up for the appreciation is correct but only because I am a resident of a Community Property state. If I lived in a non community property state the step-up would only be available following my death.
Thankyou for your condolences...
Romper
