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Net Unrealized Appreciation



If you own employer stock in your employer’s retirement plan and if that stock has appreciated when you retire or leave your company you should be aware of NUA.

NUA allows individuals to take a withdrawal from their stock holdings as a capital gain as opposed to income.

For example, say you own employer stock for which you  paid $50,000, and today it is worth $250,000.Either type or paste your guide content into this box.

If you use NUA, on the $50,000 you will pay income taxes, but on the $200,000 you will pay capital gains taxes, which are 15% to 20% below income tax rates for most people.

The $200,000 is your NUA.  It will fluctuate as the stock moves up and down.

NUA is an important option.  It can reduce taxes, but it may concentrate risk during retirement when diversification is needed.

Securities offered through Cambridge Investment Research, Inc., a broker/dealer, member FINRA/SIPC. Investment advisory services offered through Cambridge Investment Research Advisors, Inc., a Federally registered investment advisor. Tim Hayes, Investment Advisor Representative / Registered Representative, 39 Braddock Park Boston, MA 02116.

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Comment   |  5 years, 1 month ago from Boston, MA