The NUA distribution locks in one tax advantage permanently, but the stock keeps moving after it leaves the plan. This final installment covers the one-year holding period on new gains, the concentration risk of holding, and the Medicare IRMAA surcharge that arrives two years after the sale.
The NUA strategy hinges on one number — the cost basis of your employer stock. Most participants have never seen it. This second installment in the series explains exactly what it is, who maintains it, and how to request it before the distribution paperwork arrives.
The federal NUA tax break can save retiring executives over $600,000 — but your state may claw much of it back. This first follow-up article maps which states preserve the advantage, which erode it, and the one question worth answering before the distribution becomes irreversible.
The strategy is called Net Unrealized Appreciation — NUA — and after 37 years in CPA practice, I continue to
