Got Company Stock in Your 401(k)? You Should Know about NUD.
In many large publicly traded companies, it’s common to reward employees with employer stock. Usually through a profit-sharing or ESOP plan, or at least by allowing employees to purchase stock themselves inside of their 401(k) plan. The disadvantage is when you withdraw money from a company plan, it is taxed as ordinary income. However, the IRS — if you can believe it — has two special rules to help: Net Unrealized Appreciation (NUA) and Net Unrealized Depreciation (NUD).
Given today’s stock market
