As discussed in a previous post, it’s usually a good idea to roll over your 401k when you leave a job. However, there are exceptions.
One good reason to pause before you roll over your 401k is to check if you might benefit from a little known tax break that goes by the rather cryptic term “NUA”. NUA stands for Net Unrealized Appreciation, which probably doesn’t help clarify things much either.
Essentially, NUA is a strategy by which people who hold company stock in their 401k plans can end up paying less income tax when making a withdrawal from …Read More