Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Net Unrealized Appreciation (NUA)?

appreciation NET nua Unrealized
0
Posted

What is Net Unrealized Appreciation (NUA)?

0 CommentsAdd a Comment

1 Answer

0

When a lump-sum distribution of company stock is taken from a retirement plan, ordinary income taxes are due only on the cost basis of those securities, not the current fair market value. The difference between the cost basis and the current fair market value, or the Net Unrealized Appreciation (NUA), is taxed only when the securities are sold and only at the lower long–term capital gains tax rate.

0 CommentsAdd a Comment

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.