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64-Year-Old Tech Exec Holds $1.6 Million in One Stock. The Wrong Move Could Cost $400,000.
Key takeaways
- The Wrong Move Could Cost $400,000.
- Spreading sales across four retirement years keeps most gains in the 15% federal bracket, typically saving six figures in taxes versus a single-year liquidation.
- The NUA election lets 401(k)-held employer stock s $1.36 million in appreciation be taxed at long-term capital gains rates instead of ordinary income rates, provided the mechanics are executed correctly.
The Wrong Move Could Cost $400,000. Carl Sullivan Sun, June 14, 2026 at 2:44 AM GMT+7 6 min read KO RSG STX Quick Read Selling $1.36 million in embedded gains all in one year triggers the 20% federal LTCG rate, 3.8% NIIT, and state taxes, representing a swing of over $400,000 compared to smarter paths.
Spreading sales across four retirement years keeps most gains in the 15% federal bracket, typically saving six figures in taxes versus a single-year liquidation.
The NUA election lets 401(k)-held employer stock s $1.36 million in appreciation be taxed at long-term capital gains rates instead of ordinary income rates, provided the mechanics are executed correctly.
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