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.

A friendly looking financial adviser sits at a desk.
(Image credit: Getty Images)

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.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

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


The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.


This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

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.