Own Company Stock Within Your 401(k)? That Could Mean a Tax Advantage

Net unrealized appreciation (NUA) can be a great deal for those who qualify. Here’s a look at how it works and what type of tax savings it can deliver.

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Roth conversions have, for good reason, become popular among people who want to avoid paying income taxes on the money they withdraw from their IRAs and 401(k)s in retirement.

But there’s another tax-saving option to consider for those whose 401(k) accounts are invested at least partially in their employer’s company stock.

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Disclaimer

Center for Asset Management, LLC (“CFAM”) is an SEC Registered Investment Adviser located in Palm Beach Gardens, Florida. SEC registration does not imply a certain level of skill or training. CFAM may only transact business in those states in which it maintains a notice filing or qualifies for an exemption or exclusion from registration requirements. www.cf-am.com

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Peter Blatt, Investment Adviser Representative, J.D.
President, Center for Asset Management

Peter Blatt is president of Center for Asset Management. He received a bachelor’s degree in accounting from Boston University and a law degree and a post doctorate degree in tax from the University of Miami School of Law.