Do you hold company stock in a retirement plan?
If so, net unrealized appreciation (NUA) could reduce taxes when that stock is distributed. Watch this 90-second video to learn when NUA applies, why timing matters, and the common mistakes that can eliminate the benefit altogether.
For more insight on executing the NUA process, download our Guide to Unlocking Tax Savings with NUAto learn how to maximize this tax strategy and avoid costly mistakes.
Video Transcript
As Arthur Godfrey once said, "I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money."
When it comes to managing your retirement accounts, understanding the tax strategies available can make a significant difference. If you own company stock, one such strategy is net unrealized appreciation (NUA), which can offer substantial tax savings. With NUA, you pay ordinary income tax only on the original purchase price of the stock, while any appreciation is taxed at the much lower long-term capital gains rate.
However, NUA isn’t for everyone and must be executed carefully. There are specific requirements to qualify, and you only get one chance to get it right, so it’s essential to follow the proper steps.
For more insight on executing the NUA process correctly, click to download our Guide to Unlocking Tax Savings with NUA to learn how to maximize this tax strategy and avoid costly mistakes.
To work with a trained professional to help evaluate and execute an NUA strategy, or to learn more ways to reduce your tax bill in retirement, contact our office today at (630) 519-3131 to schedule a time to visit.
Copyright © 2025 Ed Slott and Company, LLC. Reprinted with permission. Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.