Maximizing Wealth: The Role of Net Unrealized Appreciation in Portfolio Management

An NUA strategy allows for preferred tax treatment on the sale of employer stock after its “in-kind” distribution, rather than taxing the distributions at ordinary income tax rates. While this may seem like an obvious strategy for many investors, you need to consider the rules around the NUA transaction and their individual objectives.

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Reducing Taxes Through Employer Stock and Net Unrealized Appreciation (NUA)

As an important tax-management tool, net unrealized appreciation (“NUA”) should not be overlooked by those who want to manage their distributions tax-efficiently. The requirements to qualify for NUA special tax treatment are many and intricate, so it’s important to consult with tax and financial advisors before executing this option.

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