Want in on a Well-Kept Secret with Big Tax Benefits? Think NUA.
If you're getting ready to retire and you own a lot of your employer's stock in your 401(k), before you go the usual route and roll your entire nest egg into an IRA, there's a tax strategy you may want to consider.
Net Unrealized Appreciation (NUA) is a tax strategy that many are not familiar with or simply ignore that is especially useful for those with highly appreciated company stock in their employer-sponsored plans. It allows you to pay the long-term capital gains tax rate on part of your stock related savings, rather than paying your ordinary tax rate on all of it. That's where the tax break comes in. For most investors, long-term capital gains rates tend to be
