{
  "slug": "nua-company-stock",
  "title": "NUA Company Stock Tax Calculator",
  "heading": "Net Unrealized Appreciation (NUA) Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/nua-company-stock",
  "summary": "Compare NUA treatment vs. rolling company stock into an IRA.",
  "description": "If your 401(k) holds appreciated company stock, the Net Unrealized Appreciation rule lets you distribute those shares in-kind to a taxable brokerage account, pay ordinary income tax only on the stock's original cost basis now, and pay long-term capital gains rates (not ordinary income) on all the appreciation whenever you eventually sell — even if you sell the next day. The alternative is rolling everything into an IRA, where the entire value is taxed as ordinary income upon withdrawal, potentially for decades. This calculator compares total tax cost under both paths given your cost basis, current stock value, tax brackets, and expected holding period, so you can see whether NUA's upfront tax hit is worth the long-term capital-gains treatment on the rest.",
  "formula": "NUA path: tax now = basis × ordinary rate; tax later = (value − basis) × LTCG rate (plus 10% penalty on basis if under 55/59½ and separated early). IRA path: tax = full withdrawal × ordinary rate whenever withdrawn.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=nua-company-stock",
  "inputs": [
    {
      "id": "basis",
      "label": "Cost basis of company stock",
      "kind": "number",
      "hint": null,
      "default": 60000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "currentValue",
      "label": "Current market value of stock",
      "kind": "number",
      "hint": null,
      "default": 300000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "ordinaryRate",
      "label": "Ordinary income tax rate",
      "kind": "number",
      "hint": null,
      "default": 32,
      "unit": "%",
      "min": 0,
      "max": 50
    },
    {
      "id": "ltcgRate",
      "label": "Long-term capital gains rate",
      "kind": "number",
      "hint": null,
      "default": 15,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "earlyPenalty",
      "label": "Subject to 10% early withdrawal penalty on basis?",
      "kind": "select",
      "hint": null,
      "default": "no",
      "options": [
        {
          "value": "yes",
          "label": "Yes, under 55 and separated"
        },
        {
          "value": "no",
          "label": "No"
        }
      ]
    }
  ],
  "outputs": [
    {
      "id": "savings",
      "label": "Tax savings choosing NUA",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "nuaTax",
      "label": "Total tax under NUA strategy",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "iraTax",
      "label": "Total tax rolling to IRA then withdrawing",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "gain",
      "label": "Net unrealized appreciation",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Cost basis of company stock: 60000 $",
      "Current market value of stock: 300000 $",
      "Ordinary income tax rate: 32 %",
      "Long-term capital gains rate: 15 %",
      "Subject to 10% early withdrawal penalty on basis?: No"
    ],
    "outputs": [
      "Tax savings choosing NUA: $40,800",
      "Total tax under NUA strategy: $55,200",
      "Total tax rolling to IRA then withdrawing: $96,000",
      "Net unrealized appreciation: $240,000"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter cost basis of company stock ($).",
      "Enter current market value of stock ($).",
      "Enter ordinary income tax rate (%).",
      "Enter long-term capital gains rate (%).",
      "Enter subject to 10% early withdrawal penalty on basis?.",
      "Read your tax savings choosing nua on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "basis": 36000,
        "currentValue": 180000,
        "ordinaryRate": 19,
        "ltcgRate": 9,
        "earlyPenalty": "no"
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "basis": 60000,
        "currentValue": 300000,
        "ordinaryRate": 32,
        "ltcgRate": 15,
        "earlyPenalty": "no"
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "basis": 96000,
        "currentValue": 480000,
        "ordinaryRate": 50,
        "ltcgRate": 24,
        "earlyPenalty": "no"
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What triggers eligibility for NUA treatment?",
      "a": "You need a 'lump-sum distribution' of your entire 401(k) balance in one calendar year, after a triggering event: separation from service, reaching 59½, disability, or death. The company stock must move in-kind to a taxable account, not be sold inside the plan first."
    },
    {
      "q": "Do I owe tax immediately when I do an NUA distribution?",
      "a": "Yes, on the cost basis portion only, taxed as ordinary income in the year of distribution. The appreciation isn't taxed until you actually sell the shares, and it's taxed at capital gains rates even if you sell the very next day, which is what makes NUA valuable versus a normal 401(k) withdrawal."
    },
    {
      "q": "When does NUA NOT make sense?",
      "a": "If your cost basis is a large share of the current value (little appreciation), or if you're in a very low ordinary bracket now and expect to withdraw from an IRA gradually in future low-bracket years, a straight IRA rollover can win. Run both numbers — NUA is a math decision, not an automatic default for holding company stock."
    },
    {
      "q": "What about the rest of my 401(k) balance that isn't company stock?",
      "a": "Only the company stock portion needs in-kind distribution for NUA; the remaining balance can still roll over into an IRA tax-free as part of the same lump-sum distribution, so you don't lose tax deferral on your diversified holdings."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/amt-iso-exercise",
    "https://www.revenuelab.fyi/toolbox/asset-location-tax-efficiency",
    "https://www.revenuelab.fyi/toolbox/sepp-72t-withdrawal"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — NUA Company Stock Tax Calculator (https://www.revenuelab.fyi/toolbox/nua-company-stock)"
}