Net Unrealized Appreciation Calculator

Background.

Net Unrealized Appreciation Calculator is a checking tool for people trying to compare a simplified NUA tax split between plan basis and appreciation. The NUA strategy generally taxes employer-stock cost basis as ordinary income while qualifying appreciation may receive long-term capital-gain treatment. That definition leads directly to the displayed relationship: “simplified NUA tax = plan basis × ordinary rate + max(market value − basis, 0) × entered long-term gain rate.”

The editable entries are employer stock market value distributed in kind, plan cost basis in employer stock, ordinary-income rate on basis, long-term gain rate on nua when sold. Use values from the document or measurement that governs this net unrealized appreciation question; the defaults are only the worked fixture below. The main trap is specific to net unrealized appreciation: a lump-sum distribution and employer-security requirements are essential; later appreciation and state tax are omitted.

IRS Publication 575, Pension and Annuity Income; lump-sum distributions and net unrealized appreciation documents the convention or governing rule used here. The net unrealized appreciation output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is net unrealized appreciation calculator?

Net Unrealized Appreciation is the relationship behind this decision: the NUA strategy generally taxes employer-stock cost basis as ordinary income while qualifying appreciation may receive long-term capital-gain treatment. On this page it means simplified NUA tax = plan basis × ordinary rate + max(market value − basis, 0) × entered long-term gain rate. A lump-sum distribution and employer-security requirements are essential; later appreciation and state tax are omitted; that is the line between the reported quantity and a broader retirement analysis.

How to use this calculator.

1. 01Confirm that “simplified NUA tax = plan basis × ordinary rate + max(market value − basis, 0) × entered long-term gain rate” matches the net unrealized appreciation convention you need.
2. 02Replace the fixture values for employer stock market value distributed in kind, plan cost basis in employer stock, ordinary-income rate on basis, long-term gain rate on nua when sold with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read estimated federal tax under simplified nua split together with this boundary: A lump-sum distribution and employer-security requirements are essential; later appreciation and state tax are omitted.

The formula.

The calculation uses simplified NUA tax = plan basis × ordinary rate + max(market value − basis, 0) × entered long-term gain rate. In this net unrealized appreciation model, the entered terms are employer stock market value distributed in kind, plan cost basis in employer stock, ordinary-income rate on basis, long-term gain rate on nua when sold. The NUA strategy generally taxes employer-stock cost basis as ordinary income while qualifying appreciation may receive long-term capital-gain treatment, which is why the relationship is presented under this name rather than as a universal alternative. A lump-sum distribution and employer-security requirements are essential; later appreciation and state tax are omitted. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]IRS Publication 575, Pension and Annuity Income; lump-sum distributions and net unrealized appreciation. Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]U.S. Internal Revenue Service. Topic no. 412, Lump-sum distributions. Retrieved 2026-08-07. independence: primary; access: open.
3. [3]U.S. Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement Plans. Retrieved 2026-08-07. independence: primary; access: open.