Net Unrealized Appreciation

[JON]

I have a client who left the employment of a bank 11 years ago. He was in an ESOP there and always withdrew the dividends, by election, each year. Now he realizes that his ESOP account is worth about $600,000 and $400,000 is stock appreciation. He wants to pull it pay the tax on the cost basis ($200,000) and wait and pay the balance of taxes as he sells the stock. Is there anything that could prevent this??? Does drawing the dividends, all taxable, make any difference??? I understad the taxable issues, I think. I am concerned that there would be any reason the "in kind" distribution would not qualify!!

Thank you.

[erchess]

Bump

I'd like to see what one of the really knowledgeable people like Bees or NYEA would say about this. I certainly don't know of any reason why your client's idea won't work but I would want to know more than I do before I advised him or her.