NUA Calculator

About This Analysis

This calculator models retirement drawdowns from each strategy using a fixed annual withdrawal amount (based on your drawdown rate applied to the initial 401(k) balance). It assumes a constant rate of return, constant tax rates, and that both accounts are drawn down according to the selected withdrawal order. Net wealth includes cumulative after-tax income received plus the estimated liquidation value of remaining balances. The NUA path pays ordinary income tax on cost basis at distribution (day one) and LTCG tax on gains when brokerage assets are sold for withdrawals. The IRA path pays ordinary income tax on all withdrawals. The estate snapshot estimates heir after-tax value assuming a stepped-up basis on brokerage assets and ordinary income tax on IRA distributions; actual heir taxes depend on each beneficiary's circumstances. This tool does not account for dividend income, annual tax drag in the taxable account, RMDs, state-specific NUA rules, the impact of NUA income on other tax calculations (AMT, Social Security taxation, Medicare IRMAA), or the requirement that NUA treatment requires a qualifying lump-sum distribution of the entire 401(k) balance within a single tax year. Results are for informational and educational purposes only and should not be considered financial or tax advice. Consult a qualified tax professional before making distribution decisions.