Career upgrade: Learn practical AI skills for better jobs and higher pay.
Level up
PracticeVideosBlogFlashcardsEspañol

Net Unrealized Appreciation (NUA)

Net Unrealized Appreciation is the difference between the current value of employer stock and its original cost basis, which receives favorable long-term capital gains tax treatment when distributed in-kind.

Get personalized explanations
💡

Exam Tip

NUA = employer stock appreciation taxed at capital gains. Cost basis = ordinary income. NO step-up at death!

What is Net Unrealized Appreciation?

NUA tax strategy for employer stock in 401(k).

Tax Treatment

ComponentTax Treatment
Cost BasisOrdinary income at distribution
NUA (Appreciation)Long-term capital gains when sold

Requirements

  • Lump-sum distribution
  • After triggering event (separation, 59 1/2, disability, death)
  • In-kind distribution to taxable account

No Step-Up at Death

NUA does NOT receive step-up in basis at death.

Study This Term In

CFP Certified Financial Planner

Study GuidePractice QuestionsCheat SheetFlashcardsCourse Playlist20 videos6 blogs
109 terms5 comparisons

Retirement Planning Guidebook: Navigating the Important Decisions for Retirement Success (The Retirement Researcher Guide)

$23.12 · Buy on Amazon

Take courses on UdemyStudy guide on Mometrix

SIE

Study GuidePractice QuestionsCheat SheetFlashcardsCourse PlaylistClient Conversations MasteryDay Trading: A Beginner's Orientation136 videos33 blogs
121 terms4 comparisons

Kaplan Securities Industry Essentials (SIE) License Exam Manual, 4th Edition

$54.99 · Buy on Amazon

Prep course on AchievableTake courses on UdemyOnline course on Mometrix

Series 7

Study GuidePractice QuestionsCheat SheetFlashcardsClient Conversations MasteryDay Trading: A Beginner's Orientation131 videos33 blogs
118 terms6 comparisons

Series 7 Study Guide 2025-2026: Complete Prep Book for the FINRA General Securities Representative Certification with 10 Full Length Practice Tests and 1500+ Questions & Detailed Answers.

$29.99 · Buy on Amazon

Prep course on AchievablePractice exams on ExamEdgeTake courses on UdemyOnline course on Mometrix

Series 65

Study GuidePractice QuestionsCheat SheetFlashcardsClient Conversations Mastery84 videos16 blogs
107 terms7 comparisons

Series 65 Study Guide 2025 – 2026: Your All-in-One Prep to Success with Practice Questions, Detailed Explanations, and Expert Strategies

$25.99 · Buy on Amazon

Prep course on AchievablePractice exams on ExamEdgeStudy guide on Mometrix

Series 66

Study GuidePractice QuestionsCheat SheetFlashcardsClient Conversations Mastery74 videos14 blogs
98 terms4 comparisons

Series 66 Study Guide 2025–2026: 10 Full-Length Practice Tests, 1600+ Realistic Questions, Detailed Answer Explanations, and Proven Strategies to Pass the Uniform Combined State Law Exam

$29.99 · Buy on Amazon

Prep course on AchievablePractice exams on ExamEdgeFlashcards on Mometrix

Related Terms

401(k)

A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute pre-tax dollars, with potential employer matching, and tax-deferred growth until withdrawal.

Learn More with AI

10 free AI interactions per day

Stay Updated

Get free exam tips and study guides delivered to your inbox.

Free exam tips & study guides. Unsubscribe anytime.

← Back to Full Glossary