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Net Unrealized Appreciation

Net Unrealized Appreciation

Retire 8
May 16, 2016

May 16, 2016

3:42 AM America/Chicago

Many of our oil and gas retirees are faced with a decision regarding large company stock positions in their savings plans. One of the options available to employees is net unrealized appreciation(NUA). When utilizing NUA, shares of company stock are removed from a retirement plan and taxed at their original cost basis instead of their current market value. The shares can then be held in a brokerage account until they are sold. At the time of sale the difference between the stock’s cost basis and its current market value will be taxed at preferential capital gains tax rates instead of ordinary income.

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