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Could your company stock save you thousands in taxes?

If your 401(k) holds employer stock, you have a one-shot decision when you separate: roll everything into an IRA (everything becomes ordinary income later), or elect Net Unrealized Appreciation — pay ordinary tax now on the low cost basis, and long-term capital gains on the appreciation. The election is irrevocable.

This calculator gives a federal-only estimate. State tax, AMT, and NIIT are not modeled — use the recommendation as a directional guide, then verify with a CPA before executing.

What your employer paid for the stock when contributed. On 401(k) statement — “cost basis”.

Current fair market value of the employer-stock portion of your 401(k).

Used to discount the future LTCG bill to present value.

When NUA usually wins

  • Cost basis is a small fraction (<25%) of current value — most of the value is unrealized appreciation
  • You're in a high ordinary bracket today but expect a high bracket at retirement too
  • You plan to sell the stock within a few years (no long deferral benefit from a rollover)
  • You're 55+ separated from service, or otherwise penalty-exempt

When rollover usually wins

  • Cost basis is more than ~50% of current value — limited NUA upside
  • You expect your retirement bracket to be materially lower than today
  • You plan to hold the stock for 20+ years without selling — deferral compounds heavily
  • You're under 55 without a 72(t) exception — the 10% penalty on basis is expensive

Learn the rules first

NUA is a one-shot, paperwork-sensitive election — most failed elections die on procedure, not math. Three short guides cover the rules that disqualify people before the numbers even matter:

One-time · $399 · Instant PDF

The NUA Decision Dossier

A one-time $399 report that stress-tests your NUA numbers — delivered as an instant PDF. What's included:

  • Two-page PDF: verdict, present-value tax math, and what drives it
  • Sensitivity grids — 5 sale horizons × 5 income scenarios
  • Step-by-step execution checklist (lump-sum rules, in-kind transfer, 1099-R boxes)
  • The 5 questions to bring to your CPA

No subscription — one-time purchase with a 30-day refund. Run the free analyzer above to generate yours.

Educational analysis — not tax, legal, or investment advice; not prepared or reviewed by a CPA, EA, or attorney.

Common questions

Is this calculator tax advice?

No. It is an educational, federal-only estimate — state tax, AMT, and NIIT are not modeled. Because NUA is an irreversible election, treat the output as a directional starting point and verify the numbers with your CPA before executing anything.

What is a lump-sum distribution?

The distribution of your entire balance across all of the employer's qualified plans of the same kind within one tax year, after a triggering event — separation from service, reaching 59½, or death (disability counts only for self-employed participants). Without a qualifying lump-sum distribution there is no NUA treatment; it is the #1 disqualifier.

What does the $399 Decision Dossier add?

The free analyzer gives one federal estimate for one scenario. The Dossier stress-tests your numbers across 5 sale horizons and 5 income scenarios, and adds a step-by-step execution checklist plus the 5 questions to bring to your CPA — delivered as an instant PDF, one-time purchase, 30-day refund.

Is the NUA election reversible?

No. Once employer shares are rolled into an IRA, NUA treatment for those shares is permanently lost, and once the distribution is executed, the ordinary tax on the cost basis is due for that year. That one-way door is why every page here says the same thing: get the figures in writing and verify with your CPA before any money moves.

Doing a full rollover too?

Generate a personalized $49 rollover plan covering the non-stock portion of your 401(k): custodian-specific transfer steps, 60-day deadline timeline, AMT modeling. Start the rollover plan →