Note sull'episodio
When you leave a long career with a big block of your own company's stock inside a 401(k) or ESOP, one decision at separation can't be redone. Most people roll the whole account into an IRA, which is the default and usually right for the rest of the account. But for the appreciated company stock, that same default can erase a tax break called Net Unrealized Appreciation (NUA), and once the shares move into an IRA, it's gone for good. This video walks through what NUA is, how the numbers actually work, and when it fits. Under the NUA rules (IRS Topic 412 and Publication 575), you take the company shares out in a lump-sum distribution and pay ordinary income tax now on only the cost basis, while the appreciation is taxed later at long-term capital gains rates when you sell. For tax year 2026, per IRS Revenue Procedure 2025-32, long-term capital gains top out at 20% while ordinary income for a high earner tops out at 37%. Roll the shares into an IRA instead and the whole position, basis and appreciation both, comes out later as ordinary income. We also cover the conditions that make or break the election (lump-sum distribution, shares distributed in kind, the whole account cleared in one tax year, a triggering event like separation), and the three situations where rolling everything to an IRA is genuinely the better call, so you can tell which side of the fork you're actually on. Timestamps: 0:00 Hook and framing 1:02 What NUA actually is 3:10 The fork, with a number on it 5:06 The conditions, stated plainly 7:02 When rolling to an IRA is the right call 8:47 The order it actually happens in 10:20 Summary 11:06 Next step This is educational content, not personalized financial, tax, or investment advice. The San Diego HENRY strategy: https://www.bas-financial.com/the-san-diego-h-e-n-r-y-strategy?utm_source=youtube&utm_medium=video_description&utm_campaign=weekly_2026-09-28&utm_content=wk_longform_henry Book a complimentary conversation: https://www.bas-financial.com/book #NetUnrealizedAppreciation #NUA #CompanyStock #401k #RetirementPlanning #TaxPlanning #ESOP