Net unrealized appreciation in employer's securities (1099-R) If you received a lump-sum distribution from a qualified plan that includes securities of the employer?s company, the net unrealized appreciation (NUA) (any increase in value of such securities while in trust) is taxed only when you sell the securities unless you choose to include it in your gross income this year. See Pub. 575 and the instructions for Form 4972. If you did not receive a lump-sum distribution, the amount shown is the NUA attributable to employee contributions, which is not taxed until you sell the securities.
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