NUA Calculator 2026 β Net Unrealized Appreciation vs IRA Rollover
Compare the NUA strategy against rolling employer stock to an IRA. Calculate tax savings, effective rates, and breakeven point for your 401k employer stock.
NUA vs. IRA Rollover β Side-by-Side Breakdown
| Tax Component | NUA Strategy | IRA Rollover |
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How the NUA Strategy Works
When you take a lump-sum distribution of employer stock from your 401k, you pay ordinary income tax only on the cost basis β the price at which shares were allocated to your account. The Net Unrealized Appreciation (the gain from cost basis to current market value) is not taxed until you sell the stock, and then it is taxed at preferential long-term capital gains rates (0%, 15%, or 20%).
The alternative β rolling the stock to an IRA β defers all taxes, but when you eventually withdraw, 100% of the value (including all appreciation) is taxed as ordinary income. NUA wins when the capital gains rate differential is large enough to offset immediate tax on the basis.
The Formula
NUA Tax on Basis = Ordinary tax on (Cost Basis Γ Shares + Other Income)
NUA Tax on Appreciation = NUA Amount Γ LTCG Rate (0/15/20%)
IRA Tax = Ordinary tax on (FMV Γ Shares + Other Income when withdrawn)
Savings = IRA Tax β (NUA Basis Tax + NUA Appreciation Tax)
Example
NUA Amount: ($85 β $20) Γ 1,000 = $65,000
Basis taxed at ordinary rates: $20,000 β ~$2,200 tax
NUA appreciation: $65,000 Γ 15% LTCG = $9,750
NUA total tax: $11,950 | Effective rate: 14.1%
IRA rollover: $85,000 all at ordinary rates β ~$18,700 tax | Effective rate: 22%
NUA saves $6,750 β strategy wins!
FMV Sensitivity Analysis
See how NUA tax savings change at different stock price levels β from $50 to $1,000 per share
How does NUA savings change as the stock price increases? The NUA advantage grows with more appreciation because the appreciation is always taxed at capital gains rates instead of ordinary rates.
| FMV per Share | Total Stock Value | NUA Amount | NUA Total Tax | IRA Rollover Tax | NUA Saves |
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