NUA (Net Unrealized Appreciation) Calculator 2026
Compare the tax impact of rolling over company stock to an IRA versus moving it to a brokerage account using the NUA rule.
Last updated: May 2026
What the stock was worth when purchased in 401k.
Net after-tax value
Net after-tax value
NUA Trick: If your company stock has appreciated significantly, moving it to a brokerage (taxable) account instead of an IRA lets you pay lower Capital Gains rates on the growth.
The NUA Tax Loophole
When you retire or leave a company, you typically roll your 401(k) into an IRA. However, if your 401(k) contains Company Stock that has increased significantly in value, you might be better off using the Net Unrealized Appreciation (NUA) strategy.
In 2026, the NUA rule allows you to move just the company stock to a taxable brokerage account. You pay ordinary income tax only on the Cost Basis (what you paid for it), while the entire appreciation is eventually taxed at much lower Long-Term Capital Gains rates.
How to use this calculator
- 1Current Value — Enter the current total market value of the company stock held in your 401(k).
- 2Cost Basis — Find the original cost of that stock (your plan administrator should have this number).
- 3Tax Rates — Input your current federal/state income tax rate and your expected long-term capital gains rate.
- 4Compare Results — See the net 'After-Tax' value of both paths. If the NUA path is higher, you save money.
Formula & example
NUA Tax = (Basis × Income Tax) + (Appreciation × LTCG Tax)
Example: $500,000 Stock, $100,000 Basis, 32% Income Tax, 15% LTCG.
- IRA Path: $500k taxed at 32% = $340,000 net.
- NUA Path: ($100k at 32%) + ($400k at 15%) = $32k + $60k tax = $408,000 net.
- Savings: $68,000 saved using NUA!
Benefits
Lower Tax Rate
Convert ordinary income (up to 37%) into capital gains income (15-20%).
Immediate Access
Once moved to a brokerage account, funds are no longer subject to IRA withdrawal rules (though taxes apply).
Estate Planning
Heirs might benefit from different tax treatment of NUA stock in some cases.
Use cases
Retiring Employees
Planning a lump-sum distribution of their company stock at retirement.
Layoffs
Deciding what to do with stock options or granted shares when leaving a company.
Wealth Rebalancing
Diversifying out of a concentrated company stock position while minimizing tax drag.
Frequently asked questions
Can I do NUA for only part of my stock?+
Yes, you can cherry-pick specific tax lots with the lowest cost basis for NUA while rolling the rest to an IRA.
Is there a penalty for NUA?+
If you are under 59 ½, the 10% early withdrawal penalty applies to the cost basis portion, though there are some exceptions (like Age 55 rule).
Does NUA stock get a step-up in basis at death?+
Generally, no. The NUA portion does not receive a step-up in basis, unlike other assets in a brokerage account.