Episode 47 of Retirement Tax Matters breaks down Net Unrealized Appreciation (NUA) for employer stock held inside a 401(k) plan. Garrett Crawford, CFP® and Adam Reed explain how transferring appreciated company shares in-kind to a taxable brokerage account allows retirees to pay ordinary income tax on the original cost basis while securing long-term capital gains tax rates on the growth. The episode examines how cost basis ratios dictate whether NUA outperforms a traditional IRA rollover, while outlining rules like single calendar year distributions and trade-offs like single-stock concentration risk.

We have developed a 5-step framework for what tax planning looks like for High-Net-Worth Retirees between $2M-$8M. It walks you through each season of the calendar year and how we implement tax-return driven financial planning for clients. Request a free resource using this link: https://www.retirementtaxmatters.com/checklist

00:00 Introduction & High-Saver Net Worth Profiles

01:45 What is Net Unrealized Appreciation (NUA)?

04:15 What Accounts & Stock Types Qualify?

05:40 Cost Basis vs. Appreciated Growth Explained

07:10 Example: How NUA Tax Savings Actually Work

08:50 The Calendar Year Rule & 4 Qualifying Events

10:15 Ideal Candidates & The 50/50 Basis Dilemma

13:30 Key NUA Trade-Offs: Step-Up in Basis & Upfront Taxes

15:25 Concentration Risk & Psychological Challenges

17:00 Taking Action: Multi-Year Tax Projections

19:10 Employer Rules & Basis Tracking Gotchas

Visit us online at: https://www.retirementtaxmatters.com

Review our required industry disclosures here: https://www.retirementtaxmatters.com/disclosures