Net Unrealized Appreciation
Significant Tax Savings In The Right Situation.
An investor often has net unrealized appreciation in a qualified plan at their employer. It happens after company stock in the plan has appreciated significantly, but the gain has not yet been realized through a sale.
The goal, with proper planning, is to convert the gain that would normally be taxed at much higher ordinary income rates to much lower capital gain rates. However, there are significant rules and a specific process must be followed. The key is to do proper planning before a distribution is taken.
Again, there is no universal strategy that works for all investors. Rather, a custom strategy must be developed for each individual based off that investor’s unique needs and goals. At JIC, we seek to learn as much as possible about you and your financial picture before developing a holistic, custom strategy.