Hidden Tax Secrets: How NUA Can Save You Thousands

If you've invested company stock in your 401k, you need to hear about Net Unrealized Appreciation (NUA). In this episode of the Best Advice Podcast, host Rob Lovaglio and Senior Advisor Daniel Courson unveil the tax-saving power of NUA. Learn how this strategy allows you to transfer company stock from your 401k to a brokerage account, minimizing taxes by paying ordinary income tax on the original investment and capital gains tax on the profits. Join us as we break down a real-life example that saved a client over $76,500 in taxes. We'll guide you through the steps involved and discuss the pros and cons of adopting the NUA strategy. Discover the potential pitfalls and why this approach might not be suitable for everyone. Whether you're planning your retirement or exploring investment strategies, this episode is a must-listen for insightful guidance on how to manage company stocks in your 401k effectively.