Net Unrealized Appreciation (NUA)

Net Unrealized Appreciation (NUA) provides a unique tax treatment for employer stock held within a qualified retirement plan, allowing distributions to be taxed partly as ordinary income and partly as long-term capital gains, potentially resulting in significant tax savings. While the NUA strategy can offer meaningful benefits, it is not suitable for everyone. Careful consideration of your overall financial situation and retirement goals is essential to determine whether this approach aligns with your long-term retirement planning.