NUA only applies to employer contributed stock. It does not apply to the
shares that you purchased or reinvested.

If you do qualify for NUA, that information should be on your statement. It
will provide the cost basis information.

Also, remember that taking advantage of NUA is an all or nothing situation.
You cannot only do a portion of the retirement account.

If you decide to take advantage of NUA, you will be taxed on the cost basis of
those shares and be subject to the early distribution penalty if it applies to
you.

Larry

Hi, I'm trying to find out how certain distributions from my 401(k)
company stock will be taxed. Using net unrealized appreciation rules,
I understand that I will be taxed at the normal rate for the cost
basis of the stock in my 401(k) if I withdraw that stock, but what
counts toward that cost basis:
1) only my pre-tax contributions?
2) also the employer-matched contributions?
3) how about reinvested dividends? (and what if I cannot find the
records for all of the reinvested dividends?)

And does anyone know whether California tax laws treat this
differently than federal tax laws?

Thanks for your help!
--Padraic