I have a situation where I hold a substantial amount of company stock with a low cost basis so am looking for NUA tax treatment. In January 2023, the corporation sold 51% of my company to another corporation. As part of the sale, holders of company stock were given 1 year to liquidate the stock or the ability to move in kind is an option. Another part of the NUA rule is 100% liquidation of the total 401K account. In my case, 100% liquidation of the 401K account means I would have to terminate employment according to the 401K plan rules.
My question is timing. Given this scenario, would I have to terminate emplyment in January 2024 to meet the 1 year stock liquidation rule? or would I be able to transfer the company stock portion in kind to another brokerage account in Jan 2024 and delay terminating emplyment until later in 2024 to meet the 100% liquidation of the 401K account?