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Run the numbers in seconds with our NUA Tax Savings Calculator. Compare NUA vs. regular distribution tax and see your exact savings instantly.
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Frequently Asked Questions
Get accurate NUA tax estimates based on your cost basis and tax bracket. Free calculator, instant results, no signup required.
A: NUA lets you pay ordinary income tax only on your cost basis, not the full market value. The appreciation gets taxed at the lower long-term capital gains rate instead. That gap between rates is where the real savings come from.
A: It depends on your appreciation ratio — how much your stock has grown above its cost basis. A stock that's tripled in value, like $50,000 growing to $200,000, can produce tens of thousands in tax savings compared to a regular distribution.
A: Yes. The bigger the spread between your ordinary income tax rate and your capital gains rate, the more valuable the NUA strategy becomes. High earners in top tax brackets typically see the largest savings.
A: Basis tax is what you owe immediately on your original cost basis, taxed as ordinary income. NUA tax refers to the deferred portion — the appreciation — which is only taxed when you sell, and at the lower capital gains rate.
A: NUA works best when your company stock has appreciated significantly inside your 401(k) and you're planning a lump-sum distribution. A high appreciation ratio combined with a high income bracket is the ideal setup.
A: This calculator estimates federal tax savings only. State tax rules vary, so your actual savings may differ. Always confirm final numbers with a tax professional before making a distribution decision.
A: No. Even rough estimates of your cost basis, current market value, and tax rates will give you a solid directional answer. Run a few scenarios to see how sensitive your tax savings are to each input.