Net unrealized appreciation (NUA)
Capital gains on growth
Can You Write Off Net Unrealized Appreciation?
Short answer: Moving company stock from a 401(k) to a brokerage account taxes only your cost basis now; the growth is taxed at long-term capital gain rates when sold.
Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
Net unrealized appreciation (NUA)
Capital gains on growth
Individuals / Personal Taxes
Moving company stock from a 401(k) to a brokerage account taxes only your cost basis now; the growth is taxed at long-term capital gain rates when sold.
Business justification
Moving company stock from a 401(k) to a brokerage account taxes only your cost basis now; the growth is taxed at long-term capital gain rates when sold. Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Category
- Personal Tax Deductions