When leaving a job for whatever reason, one of the biggest decisions you will face is what to do with your 401(k). If your plan includes shares of your company's stock, NUA is something to consider during this process.
The Basics of NUA:
- Net Unrealized Appreciation (NUA) can provide a significant tax break for those holding low-basis employer stock in their retirement plan.
- There are strict rules that must be followed to take advantage of the NUA option.
- NUA can provide an additional level of planning flexibility.