With DuPont stock and other companies reaching new all-time highs, understanding the tax treatment of net unrealized appreciation is paramount to financial planning. When you distribute company stock or its cash value from your 401(k), you only pay income tax on the stock’s cost basis – not on the capital gain! Please note that a person must qualify for this tax treatment by either reaching age 59.5 or separating from their employer. At Brandywine Oak, we guide our clients through the nuances of the tax code to maximize their hard-earned assets.
To learn more about this timely topic, please read Fidelity’s https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock.
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