Roth conversions are popular tools for helping reduce the future tax burden on withdrawals from retirement accounts. But a Roth conversion isn’t always the right solution — especially if the assets in your 401(k) include company stock from your employer.
Net unrealized appreciation (NUA) could be a smarter way to minimize the tax hit on withdrawals from your retirement account. This Kiplinger article explains the ins and outs of NUA and how, under the right circumstances, it has the potential to almost eliminate your tax liability.
This article was written by Kiplinger, an entity unrelated to HoyleCohen, LLC. The information herein is intended for educational purposes and has been selected by HoyleCohen due to the timeliness of the subject matter.
