- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Tell me about Net Unrealized Appreciation (NUA)
Posted on 8/23/25 at 1:36 am
Posted on 8/23/25 at 1:36 am
I am freshly retired at 60 and my financial advisor tells me that there would be some major tax advantages to pulling my company stock out of my 401K through NUA. The Information on the internet is sketchy at best on NUA.
The questions I have (so far) are:
- are there time constraints surrounding when you can implement NUA?
- why would it be beneficial to pull my stock out of the 401K now vs. later?
Any info that anyone can provide is much appreciated!
The questions I have (so far) are:
- are there time constraints surrounding when you can implement NUA?
- why would it be beneficial to pull my stock out of the 401K now vs. later?
Any info that anyone can provide is much appreciated!
This post was edited on 8/24/25 at 12:50 am
1
Posted on 8/23/25 at 3:30 am to Spankum
quote:
Given the disparity between the two rates, the ability to swap ordinary income tax rates for long-term capital gains tax rates on a portion of a worker’s retirement savings may sound highly appealing. However, doing so is not always a great move. While the NUA itself gets the benefit of long-term capital gains treatment, the portion of the shares distributed that is attributable to their cost when purchased within the employer plan (what would be their basis had they been purchased with taxable dollars) is subject to ordinary income tax rates right away. Additionally, completing an NUA transaction removes the assets (for which NUA is used) from the ‘protective’ tax-deferred wrapper provided by a retirement account.
LINK
Not a good idea unless you have a very low CB and you need to make a withdrawal.
I'd probably find another FA.
Posted on 8/23/25 at 9:40 am to TheOcean
quote:
Not a good idea unless you have a very low CB and you need to make a withdrawal.
I'd probably find another FA
I actually do have a very low CB. I don’t need the money, but desire to reduce the tax burden when the required distributions kick in.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News