Net Unrealized Appreciation (NUA) Calculator
Net Unrealized Appreciation (NUA) Calculator

When you receive a lump sum distribution1 from your retirement plan that includes employer stock, you'll need to decide whether to take advantage of special tax rules that apply to net unrealized appreciation (NUA)2. Typically, your options will include (a) electing NUA treatment and selling the stock after a specified holding period3, (b) electing NUA treatment, selling the stock immediately, and reinvesting the net proceeds4, or (c) forgoing special NUA treatment and rolling the distribution over into a traditional IRA.

This calculator lets you compare the after-tax results of these three scenarios.

Information about stock distribution
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*Employee after-tax contributions

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Tax Rates
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Early distribution penalties

For calculating tax on your stock basis. In general, the penalty does not apply if you'll be age 55 or older in the year you terminated employment, or if you're self employed or disabled.

For calculating tax on your IRA distribution. In general, the penalty does not apply if you're age 59½ or older when your IRA is paid out. Other exceptions--for example, disability--may also apply.

1A lump sum distribution is generally a distribution, within a single tax year, from all your employer's qualified plans of the same type. The distribution must be paid after you reach age 59½, or as a result of your separation from service (if you are an employee), or permanent disability (if you are self-employed), or death.

2In general, if NUA tax treatment applies, your stock's cost basis is taxed currently at ordinary income tax rates. Any unrealized appreciation at the time of distribution from the plan (NUA) is taxed at long-term capital gains rates when you sell the stock (regardless of how long you hold the stock). Any additional stock appreciation in excess of NUA is taxed when you sell the stock at long-term or short-term capital gains rates, depending on your holding period. (This calculator assumes that any additonal stock appreciation will be taxed at long-term rates.)

3For scenario (a), the calculator assumes you will sell enough shares of stock to pay the immediate income taxes due on the stock's cost basis.

4Scenario (b) assumes you reinvest the proceeds in a capital asset that you sell at the end of the holding period.

 IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. This communication is strictly intended for individuals residing in the state(s) of FL and NY. No offers may be made or accepted from any resident outside the specific states referenced.
 Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024.