Cost Basis of Stock Removed from Company Retirement Plan

Oct 07, 2023 Last reply: 2 years ago 1 Replies

In 2008, nine years after retirement, I removed my assets from my prior employers retirement plan. Most of the assets were rolled over tax-free into an IRA but the company stock was transferred to me. I paid income tax on the value of that transaction as determined by the company.



The company provided me with the Cost Basis for the stocks transferred to me, but I am wondering if the fact that I paid income tax on the distribution increased the basis, perhaps to the value of the shares on the day of distribution.



(I have left this unresolved for years since I had assumed when I die the cost basis stock would be bumped up to the value on the day of my death, but I've become interested in determing the cost basis now.)


After I posted this I realized that I had paid income taxes only on the portion of the distribution that was related to my original tax-free contributions.

I did not pay any taxes on the net unrealized value so the basis would not have changed.

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