Many companies still offer employer stock in 401(k) plans because of a tax preference called net unrealized appreciation (NUA).
Then there are the truly unorthodox investors, like Rajeev Kotyan, 43, a partner in the financial firm NUA Advisors, in Lexington, Mass.
WSJ: A Nervy Approach to Retirement Saving | WSJ.Money Summer 2013
Hollywood star John Hurt has spoken of his new role as the first Chancellor of the Norwich University of the Arts (NUA).
If your employer stock is highly appreciated and the distribution qualifies as a lump-sum distribution (LSD), then you can elect to use the NUA option.
The NUA is not taxed until the shares are sold, and when the shares are sold, you only pay tax at long-term capital gain rates.
Another important benefit of the NUA strategy is that for any shares not liquidated after distribution, a step up in basis is available at death.
FORBES: Tap Into Employer Stock Without Paying Taxes (For Now)
According to statistics from august bodies such as the Nua Internet survey and Nielsen-Netratings, just 600m of the world's 6.3bn people are wired to the web.
You may or may not be familiar with the concept of Net Unrealized Appreciation (NUA) as it relates to company stock owned in your 401(k) plan.
He said he aimed the make the NUA "second to none and the envy of the most illustrious institutions, not just in this country but worldwide".
Best known for acting roles in films which include Elephant Man, Midnight Express, 1984 and Alien, Mr Hurt began his association with NUA last year and officially accepted his ceremonial figurehead and ambassador position at the City Hall's Council Chamber.
When any or all of the employer stock is sold, Bill will pay long-term capital gain rates, currently only 15%, on the NUA attributable to that stock, regardless of how long (or short) the stock was held after it was distributed from the plan.
That's true even if you sell the shares the day after the distribution from your plan, since the rule requiring you to hold the stock more than one year to qualify for long-term capital gain rates does not apply to NUA stock withdrawn as part of an LSD.
Well, at one time, it was thought that you could work both sides of the coin and utilize the loophole: if you converted the company stock directly to the Roth, it seems that you would only have to pay tax on the basis of the stock (per NUA rules), and then never have to pay tax on the capital gains.
应用推荐