Thank you for this video. I retired from Graco last year after 31years and I executed the NUA strategy this last January. My question is in regards to the basis that is paid at ordinary income rates in the year of distribution. On which tax form is this basis reported? Was wondering if it's considered Additional Income on schedule 1, or a taxable Ira distribution on 1040, or somewhere on schedule D? Thank You
Congrats on your retirement! The reporting will be on an Empower issued 1099R. Box 1 will be the gross distribution (the total rollover amount). Box 2a will show the taxable amount. Assuming no other taxable distributions were taken in the tax year from the 401k/ESOP, box 2a should match cost basis. 401k rollovers are typically reported on line 5 of the 1040. Hope that helps.
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Thank you for this video. I retired from Graco last year after 31years and I executed the NUA strategy this last January.
My question is in regards to the basis that is paid at ordinary income rates in the year of distribution.
On which tax form is this basis reported? Was wondering if it's considered Additional Income on schedule 1, or a taxable Ira distribution on 1040, or somewhere on schedule D?
Thank You
Congrats on your retirement! The reporting will be on an Empower issued 1099R. Box 1 will be the gross distribution (the total rollover amount). Box 2a will show the taxable amount. Assuming no other taxable distributions were taken in the tax year from the 401k/ESOP, box 2a should match cost basis. 401k rollovers are typically reported on line 5 of the 1040. Hope that helps.