ArrowMatt
May 30 2003, 09:32 AM
Hi all.
We have a participant that is requesting a combination payment of his ESOP - rollover & direct pay.
Question is he has both pre-1987 and post 1986 shares. As you can image, the cost basis for the shares pre-1987 is lower.
Which shares should be used on the direct pay? Is there a standard way of issuing shares? FIFO, LIFO?
Thanks.
QDROphile
May 30 2003, 10:15 AM
Why don't you let the participant identify the shares?
Kirk Maldonado
May 30 2003, 11:07 AM
My recollection (although it was a number of years ago) is that the participant has the same basis in all of the shares that are distributed from the plan (even though the plan may have a different basis in the shares while it holds them).
If that is right, then it doesn't matter which shares are distributed.
Harry O
May 30 2003, 05:10 PM
Kurt is correct. There is a 1950s revenue ruling to that effect.
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