401k Critical Mistake #4: Selling 401k Company Stock? STOP. Consider This Tax Move First

Описание: Do you have highly appreciated company stock inside your 401k, and are thinking of selling it?

If so, that move could silently erase one of the most powerful tax-saving opportunities available to executives.

In this episode of The Critical Mistakes Series™, David Dunn explains 401k Critical Mistake #4: a costly oversight made by executives who sell company stock inside their 401k without understanding the impact on Net Unrealized Appreciation (NUA).

On the surface, rebalancing a concentrated portfolio or locking in gains may seem prudent. But with company stock, the consequences go far beyond investment performance. They directly affect your future tax bill. Once stock is sold inside the 401k, the ability to separate cost basis from gain and apply capital gains tax treatment may be permanently lost.

This episode shows how the NUA provision works, what is at stake, and how to evaluate whether a sale supports or sabotages your bigger picture.

Topics covered include:
• Why selling inside a 401k may destroy NUA tax benefits
• How a $1M example illustrates over $150k in tax savings
• What makes the NUA strategy work and what causes it to fail
• Why a step-by-step plan is crucial to avoid missteps

The NUA strategy is not right for everyone, but when it fits, the tax leverage can be enormous. The key is knowing how to execute with precision and timing. Without coordinated planning, it is easy to lose the opportunity forever.

This is the second in a four-part series covering the most common mistakes executives make with 401k company stock. Watch Mistakes #3, #5, and #6 to learn how to protect one of the most overlooked tax planning opportunities.

To learn more about David Dunn and the Critical Mistakes Series™, visit DAVIDDUNN.COM.

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David Dunn Wealth, LLC (DDW) is a member firm of The Fiduciary Alliance, LLC (TFA), a Securities and Exchange Commission registered investment advisor. See full disclosure at www.daviddunn.com. This content is for informational purposes only and should not be construed as investment advice or an offer to buy or sell securities or other financial products. DDW does not provide accounting services. While information is based on sources deemed reliable, its accuracy is not guaranteed. DDW is independent and not affiliated with, endorsed by, or sponsored by Boeing, Microsoft, or their affiliates. Any reference is for illustrative purposes only. Always consult your own advisor before making financial decisions.