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The lump-sum distribution includes employer securities and the payer reported an amount in box 7.
A lump-sum distribution is when all of a plan participant's remaining balance from all of the employer's eligible plans of one kind are distributed or paid to them in one tax year (for example, pension, profit-sharing, or stock bonus plans).
The net unrealized appreciation (NUA) in employer securities is typically not subject to tax until you sell the securities, even if the lump-sum distribution includes employer securities and the payer reported a sum in box 7 of your Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. for NUA in employer securities. You may, however, decide to include the NUA in your income in the year that you receive the securities.
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