I want to know if turbotax handles NUA stock sold. Company stock from pretax dollars that I used NUA strategy on retirement. I have the cost basis at that time.
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New Member

I want to know if turbotax handles NUA stock sold. Company stock from pretax dollars that I used NUA strategy on retirement. I have the cost basis at that time.

They were in a TDAmeritrade acct.  I sold some last year but TDA doeasnt know the cost basis and not sure they would know it was NUA stock.  Should I expect a 1099R?  What tax form would used to file to get correct tax?
4 Replies
Level 12

I want to know if turbotax handles NUA stock sold. Company stock from pretax dollars that I used NUA strategy on retirement. I have the cost basis at that time.

TurboTax doesn't really have a "native" interview or process for stock sold with NUA.  You might need to figure out your results outside of TurboTax and then make entries in TurboTax that come to that result.  If you had sold that stock on the same day it was distributed to you you would have reported LTCG in the amount of the NUA.  Price movement since the distribution date is considered short term gain or loss or long term gain or loss depending on how long you owned the stock before selling.

You say you "have the cost basis at that time" (of distribution I assume) and that's because a 1099-R was issued to you since it was a distribution from a retirement plan.  That cost basis is still your cost basis.

Since the stock was moved to an after-tax brokerage account its sale should result in you eventually receiving a 1099-B which you might have to break up into two sales if you have short term gain or loss resulting from price movement from the time of distribution to the date of sale.

Tom Young

Level 2

I want to know if turbotax handles NUA stock sold. Company stock from pretax dollars that I used NUA strategy on retirement. I have the cost basis at that time.

Hello,

 

In July 2019 I transferred company stock from my 401k to a brokerage account via the NUA method.  I recvd the 1099R statement with the cost basis of the account at that time so that part of it is fine.  However, I have since sold some of the shares in the brokerage account but there was no cost basis showing for these shares.  How do i figure out the cost basis of these sold shares Since I was buying stock for 29 years when this was in my 401k or Is the cost basis the closing price of the stock at the time it was transferred to this brokerage account? 

Thank you in advance.

Employee Tax Expert

I want to know if turbotax handles NUA stock sold. Company stock from pretax dollars that I used NUA strategy on retirement. I have the cost basis at that time.

This would be the stock price when you first bought the stock. This is why there was no cost basis reported because the brokerage did not know the basis you paid when you bought it. There are several websites you can search historical stock prices.  i can't recommend which one to pick but try googling the term historical stock prices and then search each one to try to get a consensus on the basis of that stock 29 years ago.

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New Member

I want to know if turbotax handles NUA stock sold. Company stock from pretax dollars that I used NUA strategy on retirement. I have the cost basis at that time.

I have the same issue. IRS rules state that taxes are required in the year of distribution for the cost basis, regardless of any withdrawals were taken. I'm assuming withdrawals greater than the cost basis amount are then taxed at the appropriate capital gains rate. I'm using Turbo Tax Premium, but don't think the calculations are correct. Is Turbo Tax not able to calculate appropriate taxes for NUA distributions?

I was also playing with different scenarios for this year's estimated taxes. I entered income of $50K with capital gains, from the distribution taken last year, of $20K. We are married and filing jointly. According to the tables the rate on capital gains for 2019 is 0% on income less than $78,750. Why did Turbo Tax show a tax increase when the capital gains were entered?

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