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Net Unrealized Appreciation (NUA) Calculator

Compare the NUA election on employer stock against a straight IRA rollover, after tax.

  • Formula checked
  • Editorially reviewed
  • Free · no signup
  • Updated June 27, 2026

Your details

USD
USD

What the plan paid for the shares — shown on your plan statement.

%
%
%

Your estimated tax

NUA election saves

$28,000.00

After-tax comparison, ignoring future growth

Net unrealized appreciation$400,000.00
Ordinary tax due now on basis$32,000.00
Capital gains tax on the NUA$60,000.00
Total tax — NUA election$92,000.00
Total tax — roll to an IRA$120,000.00
After-Tax value — NUA$408,000.00
After-Tax value — IRA rollover$380,000.00

Key takeaway

Electing NUA on $500,000.00 of employer stock saves about $28,000.00 in tax versus rolling everything to an IRA.

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Estimated tax breakdown

The same numbers as above, shown visually so the trade-offs are easy to see.

Estimated tax breakdown
After-Tax value — NUA
$408,000.00
Net unrealized appreciation
$400,000.00
After-Tax value — IRA rollover
$380,000.00
Total tax — roll to an IRA
$120,000.00
Total tax — NUA election
$92,000.00
Capital gains tax on the NUA
$60,000.00

What to do next

What this means

NUA Election Saves is $28,000.00. This estimates your liability using 2025 federal rules; state treatment varies.

Is this good or bad?

The result is healthy when withholding or estimated payments track your actual liability closely.

What's the risk?

Under-withholding produces an April bill plus potential IRS underpayment penalties.

What should you do next?

Compare this estimate to your year-to-date withholding and adjust your W-4 if they diverge.

Your action plan

  1. 1

    Compare to your year-to-date withholding

    A mid-year check prevents an April surprise.

  2. 2

    Adjust your W-4 after life changes

    Marriage, a child or side income all change the right amount.

  3. 3

    Max tax-advantaged accounts before year end

    401(k), HSA and traditional IRA reduce taxable income.

  4. 4

    Keep documentation for every deduction

    The IRS burden of proof is on the filer.

  5. 5

    Run the Income Tax Calculator

    Annual income tax across regions.

    Open Income Tax Calculator

Your timeline

Today

  • Save this estimate with your tax documents.
  • Check your latest pay stub's year-to-date withholding.

This month

  • Submit a revised W-4 if withholding is off.
  • Set aside the estimated amount if you are self-employed.

Next 12 months

  • Make quarterly estimated payments on the IRS schedule.
  • Review deductions before December 31.

Long term

  • Plan Roth conversions in low-income years.
  • Coordinate withdrawals to manage your bracket in retirement.

Your next steps on this site

Compare scenarios

Same inputs, three outlooks — we vary Ordinary tax rate this year up and down so you can see the range before you commit.

Optimistic

$34,400.00

NUA Election Saves

Ordinary tax rate this year: 25.6%

Expected

$28,000.00

NUA Election Saves

Ordinary tax rate this year: 32%

Conservative

$21,600.00

NUA Election Saves

Ordinary tax rate this year: 38.4%

Result Intelligence

Understand your result

  • Your nua election saves is $28,000.00. Federal figures use 2025 IRS brackets; state tax varies.
  • Withholding and estimated payments should track this to avoid IRS underpayment penalties.

What should you do next?

  1. W-4 Withholding

    Fine-tune each paycheck to avoid a bill.

  2. Effective Tax Rate

    See your true blended rate, not just marginal.

  3. Quarterly Estimated Tax

    Avoid underpayment penalties if self-employed.

  4. Paycheck Calculator

    Preview take-home after federal, FICA and state.

Ways to improve your result

  • Adjust W-4 mid-year if life changes (marriage, dependent, side income).
  • Contribute to HSA/401(k)/IRA to reduce taxable income before Dec 31.
  • Bunch charitable gifts into one year to clear the standard-deduction hurdle.

Common U.S. scenarios

Single Texas filer, $85k

No state income tax — effective federal rate ~14% after standard deduction.

MFJ California, $220k

Combined federal + state marginal hits 33% before FICA — HSAs and 401(k) matter.

NY self-employed, $140k

SE tax adds 15.3% on top of income tax — quarterly estimated payments avoid Form 2210 penalties.

Your result

NUA Election Saves
$28,000.00
Net Unrealized Appreciation
$400,000.00
Ordinary Tax Due Now on Basis
$32,000.00
Capital Gains Tax on the NUA
$60,000.00
Total Tax — NUA Election
$92,000.00
Total Tax — Roll to an IRA
$120,000.00

Electing NUA on $500,000.00 of employer stock saves about $28,000.00 in tax versus rolling everything to an IRA.

You may also want to check

What this result assumes

Confidence in a number depends on the assumptions behind it. Here are ours, in full.

Assumptions

  • The rate you entered stays fixed for the whole period.
  • Figures use current U.S. federal rules; state and local effects are separate.
  • All amounts are shown in USD.
  • Results are rounded for display; internal math uses full precision.

Limitations

State, local and AMT effects, credits and phase-outs may change your actual liability.

Estimates are for education and planning. They are not financial, tax or legal advice.

Formula source

IRS published brackets, standard deductions and worksheets

Version
v1.3
Last reviewed
MethodologyReferences

Related Calculators

Where to go next

Next logical calculatorIncome Tax CalculatorAnnual income tax across regions.Continue

Read before you decide

Guides and comparisons that put this number in context.

LearnTaxes guidesUnderstand what you owe — and what you can keep.Read

Quick answer

What it does
Net Unrealized Appreciation (NUA) Calculator compare the NUA election on employer stock against a straight IRA rollover, after tax. It runs entirely in your browser, needs no signup, and uses standard published U.S. formulas.
When to use
Use it while you plan withholding, estimated payments, or a filing decision involving net unrealized appreciation (nua).
Inputs
  • Market value of employer stock
  • Cost basis in the plan
  • Ordinary tax rate this year
  • Long-term capital gains rate
  • Ordinary rate if rolled to an IRA
  • Currency
Outputs
  • NUA Election Saves
  • Net Unrealized Appreciation
  • Ordinary Tax Due Now on Basis
  • Capital Gains Tax on the NUA
  • Total Tax — NUA Election
  • Total Tax — Roll to an IRA
Takeaway
In one line: enter your market value of employer stock and cost basis in the plan and the Net Unrealized Appreciation (NUA) Calculator returns nua election saves and net unrealized appreciation you can compare before deciding.

Last updated · 1 min read

How to read your result

Net Unrealized Appreciation (NUA) Calculator: Your result approximates your federal tax liability or take-home pay based on 2025 brackets. State, local, and credits can shift the number materially.

What your result means

  • Your effective tax rate is almost always lower than your marginal (top-bracket) rate.
  • Tax credits reduce your bill dollar-for-dollar; deductions only reduce taxable income.
  • Withholding too much means you're giving the IRS an interest-free loan.

How does the formula work?

NUA = Market value − Cost basis. NUA path tax = Cost basis × Ordinary rate + NUA × Long-term capital gains rate. Rollover path tax = Market value × Future ordinary rate. Advantage = (Market value − NUA path tax) − (Market value − Rollover path tax).

How it works

Net unrealized appreciation is a narrow but valuable provision in IRC §402(e)(4). When you take a lump-sum distribution of employer securities from a qualified plan after a triggering event — separation from service, reaching 59½, death, or disability — you may move the actual shares into a taxable brokerage account instead of rolling them to an IRA. You pay ordinary income tax immediately on the plan's cost basis only, and the appreciation is taxed at long-term capital gains rates whenever you sell, regardless of how long you hold. The election works best when the basis is a small fraction of market value and the spread between your ordinary and capital gains rates is wide. It fails when the basis is high, because you pay ordinary tax up front on a large amount, and it requires a genuine lump-sum distribution of the entire plan balance within one tax year. Under 59½, the 10% early-distribution penalty can apply to the basis portion.

Step-by-step guide

  1. 1Enter gross income and applicable deductions.
  2. 2Select the filing status and tax year.
  3. 3Review estimated tax, effective rate, and take-home pay.
  4. 4Adjust deductions to see how they change your liability.

Example calculation

Example: $500,000 of employer stock with a $100,000 cost basis inside a 401(k).

Who should use this calculator?

  • W-2 employees estimating a refund or bill
  • Freelancers and self-employed filers
  • Anyone comparing filing statuses or deductions
  • Tax preparers running quick client estimates

When should you use it?

  • Before filing your annual return
  • Mid-year to project your refund or bill
  • When changing jobs, filing status, or income
  • Before claiming a large deduction or credit

What affects the result?

  • Filing status and tax year
  • Gross income and above-the-line adjustments
  • Standard vs itemised deductions
  • Credits (child, education, EV, etc.)
  • State and local tax rules

Compare three scenarios

Three realistic scenarios compared side by side
ScenarioIncome (single, 2025)Federal tax + effective rate
Entry-level$55,000 gross, standard deduction≈ $4,400 · 8.0%
Mid-career$110,000 gross, standard deduction≈ $16,600 · 15.1%
Senior$220,000 gross, standard deduction≈ $46,700 · 21.2%

Illustrative examples using U.S. market averages. Enter your own numbers above for a personalized figure.

Common mistakes to avoid

  • Applying the wrong filing year's brackets.
  • Forgetting state/local taxes on top of federal.
  • Mixing gross with taxable income.

Pro tips

  • Save W-2s, 1099s and receipts for at least 3 years.
  • Run the numbers under both standard and itemised deductions before filing.
  • Consider timing large deductions into a single tax year.

Why use this calculator

  • Uses current-year IRS brackets, standard deductions and FICA limits.
  • Compares standard vs itemized deductions automatically.
  • Shows federal, state and effective tax rates in one place.
  • Great for mid-year planning, not just April 15.

Limitations to keep in mind

  • State and local rules vary and may not be fully modeled.
  • AMT, NIIT and phase-outs are simplified in some scenarios.
  • Not a substitute for a filed return or a CPA's advice.
  • Always verify against IRS forms and instructions before filing.

Key terms explained

Marginal vs effective rate
Marginal rate is the tax on your next dollar earned; effective rate is your total tax divided by total income. Effective is almost always lower.
Standard deduction
A flat amount that reduces taxable income without itemizing. For 2025 it's $15,000 single / $30,000 married filing jointly.
Above-the-line adjustment
Deductions taken before AGI is calculated (e.g. HSA, traditional IRA, student loan interest). They lower AGI regardless of standard vs itemized.
Tax credit vs deduction
Credits reduce tax owed dollar-for-dollar. Deductions only reduce taxable income, so their value depends on your bracket.
FICA
Social Security (6.2%) plus Medicare (1.45%) taxes on wages. Withheld separately from federal income tax.

Before you decide

  • Rerun the numbers with standard vs itemized deductions before filing.
  • Confirm state and local tax on top of federal — the calculator here is federal-first.
  • Verify credits (child, education, retirement saver) that reduce tax dollar-for-dollar.
  • Adjust W-4 withholding if your refund or bill is over ~$500 — don't lend the IRS money.

Official Sources & References

The formulas, rates and definitions used by this calculator are aligned with the following official sources:

We use only primary sources — regulators, standards bodies and scheme operators. See our full sourcing policy for details. Sources & References Policy · Calculator Methodology · How We Verify Formulas

Trust & Accuracy

Accuracy tested

Verified against official IRS / HMRC / Income Tax Department slab logic. Edge cases, formula validation and manual verification completed (last reviewed June 27, 2026).

Government source

Inputs and thresholds follow Internal Revenue Service (IRS) published brackets, limits and worksheets.

Educational use

This tool is provided for education and planning only. It is not financial, tax, legal or medical advice.

Available for

United States, Canada, United Kingdom, Australia, India, European Union.

Currency support

USD · INR · CAD · AUD · GBP · EUR

Privacy

No information entered into this calculator is stored on our servers unless you explicitly choose to save or share your calculation.

Print, share & save

Use the Save, Share, Copy, PDF, CSV and Print actions under the result panel.

Accessibility

Keyboard navigable, screen-reader friendly labels, responsive on mobile and desktop.

Learn more: How we verify formulas · How we test accuracy · Methodology · Editorial policy

Recent Updates

We continuously review and improve our calculators to keep formulas, assumptions and references accurate.

View change log (4)Show
  1. v1.3

    Added Trust & Accuracy panel and machine-readable change log.

  2. v1.2

    Added Save, Share, PDF, CSV and Print actions to results.

  3. v1.1

    Added global currency selector (USD, INR, CAD, AUD, GBP, EUR).

  4. v1.0

    Initial calculator release with verified formulas and Official Sources.

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Frequently Asked Questions

Related guides

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Browse all guides Tax hub

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What's next?

Your next step

Most people who use this calculator explore these next. Follow the path in order for a complete plan.

  1. 1Income Tax CalculatorAnnual income tax across regions.
  2. 2Paycheck Calculator (US)Take-home pay after federal, FICA, and state taxes.

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Reviewed by the CreditLoanCalculator editorial team·Last reviewed ·Editorial policy·How we verify formulas
Disclaimer: Results are estimates for informational purposes only and should not be considered financial, medical, legal, or professional advice. Always consult a qualified professional before making decisions.