Question
Carrie retired last week and received a lumpsum distribution of her employer's stock from the company's stock bonus plan. The value of the shares at
Carrie retired last week and received a lumpsum distribution of her employer's stock from the company's stock bonus plan. The value of the shares at the time of contribution varied. The 1st contribution was 2,500 shares at $10 per share. The 2nd consisted of 2,500 shares at $13 per share, and the last 2,500 shares were valued at $15 per share. All stock was contributed by the employer, and the current value of the stock on the date of her retirement is $22 per share. Because she is only 63 years old today, she wants to wait to sell the shares until she is 66. How much of the lumpsum distribution should Carrie report on her income tax return in the year of her retirement?
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