"AskTony" column archive

This Web site contains a compilation of more than a thousand consumer finance columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today. New material will be added beginning in late 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

Freedom Benefits Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Plus - America's favorite mini-med insurance with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

Employer stock in 401(k)

originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.

Q: I have a large amount of employer's stock in my 401(k) plan and I plan to leave and start my own company soon. Can I roll this over into a 401(k) and then sell the stock to get cast to start my business?

A: You could do that, but it would be a financial mistake. You can save a significant amount of tax by using a little-know tax strategy referred to as "Net Unrealized Appreciation" or "NUA" treatment. This essentially allows you to pay the much lower capital gains rate of tax rather than ordinary income tax rates. You should schedule a telephone session for a tax planning discussion as soon as possible to allow time to execute this strategy if you qualify.

Employer stock in 401(k)

Summary

More resources: