Need help with Net Unrealized Appreciation?
Employees holding highly appreciated company stock inside a 401(k) Plan may have access to one of the most valuable tax strategies in the Internal Revenue Code: Net Unrealized Appreciation, or NUA. NUA allows the appreciation on those shares to be taxed at long-term capital gains rates instead of ordinary income rates when the stock is sold. For employees with significant low-basis stock, this can amount to meaningful tax savings.
Need help with Net Unrealized Appreciation?
Employees holding highly appreciated company stock inside a 401(k) Plan may have access to one of the most valuable tax strategies in the Internal Revenue Code: Net Unrealized Appreciation, or NUA. NUA allows the appreciation on those shares to be taxed at long-term capital gains rates instead of ordinary income rates when the stock is sold. For employees with significant low-basis stock, this can amount to meaningful tax savings.
