Net unrealized appreciation illustration: employer stock leaving a 401(k) for a taxable brokerage account
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What is Net Unrealized Appreciation (NUA)? 401(k) Guide

BySW Accounting admin

What is Net Unrealized Appreciation (NUA), and could it lower my 401(k) tax bill? Net unrealized appreciation is a federal tax election under IRC §402(e)(4)(B) that lets you move employer stock out of a qualified retirement plan and pay ordinary income tax only on the stock’s original cost basis. The built-in gain is then taxed…