My wife received her ESOP distribution in 2023 when she retired. She received a 1099-R for this lump sum distribution showing:
Box 1 Gross Distribution
Box 2a Taxable amount (~10% of the gross
Box 4 Federal income tax withheld (<0.1% of the gross)
Box 6 NUA (~90% of the Gross
Box 7 Code 7
We were told that for tax purposes we should treat the NUA as a long-term capital gain. My question is, how do I enter this using Turbotax Premier (Mac desktop) so that it is treated as a long-term capital gain? Just entering the 1099-R info as is does not include the NUA as taxable come.
Thanks for any suggestions!
