So, this was the last part of holdings I had in a 401K after I retired. Those sums represented stocks that were part of the 401K employer contribution in corporate stocks and had not been taxed and is classified as Net Unrealized Appreciation (NUA). The cost basis in my example would be the $4000 portion in Box 2a and should be taxed as it was moved from the 401K to the IRA.
I had received other stock awards over the years, but they went into a separate stock fund and were taxed as they were awarded.
The cost basis as part of this 1099-R need to be taxed as part of earnings (lower rate) as opposed to later as capital gains. There are no other 1099s from the employer or employer programs.
The above is my understanding with discussions with my financial advisor.
Thanks!
