There may be a significant tax opportunity for your clients who have company stock in their 401(k) plans that have highly appreciated over time. Net Unrealized Appreciation (NUA) allows clients to roll dollars in company stock into a brokerage account. They'll pay ordinary income tax only on the basis in the company's stock, and they will be able to pay capital gains tax, which is most often at a lower rate on the appreciation when they sell it in the brokerage account. However, it's essential to understand all of NUA's intricacies to help your clients take advantage of this tax strategy.
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