NUA Timeline: “Trigger Events”
Everyone would prefer to pay less tax on retirement distributions to better enjoy their golden years. For individuals with company stock, it is important to be mindful of the net unrealized appreciation (NUA) tax break. The NUA process requires ordinary income tax be paid on the purchase price of the stock, but appreciation is taxed at a lower capital gains rate. If you have NUA-eligible assets, this strategy can significantly lower your tax bill. However, ensure it is suitable for your situation and be aware of the strict rules surrounding the process.
To learn more about ways to reduce your tax bill in retirement, contact our office at 516-294-5287 to schedule a time to visit.