How to Use NUA to Slash Taxes on Company Stock in Your 401k

When you've accumulated a sizable chunk of company stock in your 401(k), the standard advice is to roll it into an IRA and defer taxes. But for some retirees, that could mean paying ordinary income tax on the entire balance at withdrawal. Enter Net Unrealized Appreciation, or NUA — a tax strategy that lets you pay lower capital gains rates on the appreciation of employer stock when you take a lump-sum distribution. In this episode, Lucas and Luna break down how NUA works with a concrete example: $50,000 cost basis ballooning to $200,000. They walk through the IRS requirements — full distribution in one year, separation from service, no prior rollover to an IRA — and compare the tax bill under NUA versus a traditional rollover. They also discuss who should use it: typically those with low basis and high appreciation, who are in a lower tax bracket in their distribution year. NUA isn't for everyone, but for the right scenario it can save tens of thousands. Tune in to understand whether this strategy fits your retirement plan. #NetUnrealizedAppreciation #NUA #CompanyStock #401k #TaxStrategy #CapitalGains #RetirementPlanning #LumpSumDistribution #EmployerStock #TaxSavings #FinancialPlanning #RetirementIncome #TaxEfficient #DistributionStrategy #FexingoBusiness #BusinessPodcast #Finance #Retirement Keep every episode free: buymeacoffee.com/fexingo