05/13/2026
Sometimes the biggest value we provide as advisors has nothing to do with investment performance.
A client recently came in wanting to roll over his 401(k) into an IRA.
Simple enough, until we looked under the hood.
Nearly 90% of the account was company stock.
That changed the conversation completely.
Instead of automatically rolling everything into an IRA, we discussed a strategy called NUA, Net Unrealized Appreciation.
He had never heard of it.
Depending on the cost basis of company stock inside a retirement plan, NUA can potentially create significant tax savings by changing how the gains are ultimately taxed.
But the thing is, NUA planning takes work.
You have to research the stock basis.
Coordinate the distribution correctly.
Estimate the tax impact.
Set up both brokerage and IRA accounts properly.
And understand the long-term tradeoffs.
Have a plan for unwinding a highly concentrated stock
look it would have been much easier to simply roll the entire account into an IRA and move on.
But easier is not always better planning.
This is where financial planning goes beyond investments.
Because sometimes the opportunity is not just a return on investing.
It’s what you avoid losing in taxes.
That’s why the plan comes first.
-That Financial Guy
