hard · Certified Financial Planner Investment Planning
David Jablonski (62) and Elena Jablonski (61) have $2,100,000 in total investable assets. David's 401(k) holds $400,000 of employer stock (Basis $60,000). They disclose that their daughter, who has a severe permanent disability, relies on means-tested government benefits for her medical care. David wants to use the NUA shares to fund a trust for her.
What is the binding constraint the planner must address first?
- Preserving the daughter's eligibility for means-tested government assistance programs.
- Maximizing the step-up in basis at David's death for the highly appreciated employer stock.
- Ensuring the NUA distribution is executed within the 60-day indirect rollover window.
- Diversifying the $400,000 concentrated position to reduce portfolio-wide systematic risk.
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