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Jose M Borro II
Jose M Borro II
AirMar Wealth Management Financial Planner
https://www.prudential.com/advisor/jose-borro (561) 206-5366

Jose M. Borro II, CPFA®
Founder, AirMar Wealth Management

Born and raised in Naples, Florida, Jose is the son of Cuban immigrants whose sacrifices shaped his values: freedom, family, and opportunity. That legacy is the heart of everything we do at AirMar.

After more than a decade in the financial industry, Jose founded AirMar Wealth Management to offer something often missing in finance—human advice, grounded in trust, values, and lived experience. Every strategy we create is designed around one central truth: your life comes first.

When he’s not helping clients shape their futures, Jose is enjoying his own—boating along the Atlantic with his wife Lauren, adventuring with their son Judah, and soaking in the Florida lifestyle that inspires the AirMar name.

Licenses & Credentials:

  • FINRA Series 7 & 66 held with LPL Enterprise
  • Florida 2-15 Life, Health & Variable Annuity License
  • Certified Plan Fiduciary Advisor (CPFA®)
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The Pros and Cons of an NUA Strategy

Investment Read Time: 2 min

Employer-issued stocks can be one attractive benefit an employer can offer. But while it has its benefits, it's natural to wonder what happens if you leave that job.

That's where net unrealized appreciation (NUA) strategies can sometimes be helpful. An understanding of NUA strategies can help you determine what to do with those company stocks to potentially manage your tax bill.

Remember, this article is for informational purposes only and is not a replacement for real-life advice. Make sure to consult your tax professional before modifying your approach with any unrealized appreciation issues.

Once your tax professional has provided guidance, your financial professional can offer insights regarding your overall asset allocation if you decide to realize any gains. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee against investment loss.

What is Net Unrealized Appreciation (NUA)?

NUA is the difference between how much you paid or contributed to your company stock and its current market value. For example, if you were issued employer stock at $20 per share and it is now worth $50 per share, you would have an NUA of $30 per share ($50 - $20 = $30).

What are the NUA Rules?

Your NUA may be taxed differently than other payments. If the lump-sum distribution includes employer securities, the NUA may not be subject to tax until you sell the securities.1

With this in mind, a participant may be able to transfer company stock from their previous plan into a taxable investment account without treating the entire amount as ordinary income. But before exploring any choice in detail, seek the guidance of a tax professional while keeping your financial professional apprised of your decisions.

1.IRS.gov, January 23, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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