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Retirement & Planning

Company Stock Distribution Analysis Calculator

If you own company stock in a retirement plan you may be able to take advantage of using the long term capital gains tax rate rather than your ordinary income tax rate on this investment.

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Tax saved with NUA $23,800 $140,000 of appreciation taxed at 15%
NUA strategy tax $40,200
Rollover (all ordinary) tax $64,000
Net unrealized appreciation $140,000
Tax difference $23,800
Tax: NUA vs rollover
Tax: NUA vs rollover NUA strategy: $40kExtra under rollover: $24k
  • NUA strategy $40k
  • Extra under rollover $24k

With NUA you pay ordinary tax only on the $60,000 cost basis at distribution, and the $140,000 appreciation is taxed at the lower long-term capital-gains rate when sold. The bigger the appreciation, the more NUA beats rolling everything into an IRA where it would all be ordinary income.

How the company stock distribution analysis calculator works

It compares two ways to handle employer stock in a 401(k): the NUA strategy taxes only the cost basis as ordinary income and the appreciation at capital-gains rates, versus a rollover that eventually taxes the whole value as ordinary income.

Worked example

Worked example: with current value of company stock of $200,000, cost basis (what was paid) of $60,000 and ordinary income tax rate of 32.00%, the company stock distribution analysis (nua) shows tax saved with nua of $23,800.

NUA strategy tax
$40,200
Rollover (all ordinary) tax
$64,000
Net unrealized appreciation
$140,000
Tax difference
$23,800

The formula

NUA tax = cost basis × ordinary rate + appreciation × capital-gains rate. Rollover tax = full value × ordinary rate. NUA = value − basis.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the company stock distribution analysis calculator

What is Net Unrealized Appreciation (NUA)?

The growth in your employer stock above its cost basis. The NUA strategy lets that appreciation be taxed at lower long-term capital-gains rates instead of ordinary income rates.

When does NUA beat a rollover?

When the stock has appreciated a lot and your ordinary rate is well above the capital-gains rate. The larger the appreciation relative to basis, the bigger the NUA advantage.

What are the requirements?

NUA requires a lump-sum distribution of the employer stock after a triggering event (such as separation or reaching 59½). The rules are strict — work with a tax advisor to qualify.

Is the Company Stock Distribution Analysis Calculator free to use?

Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.

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