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Quick-quiz question: Is there ever a time when a client can pay capital gains tax rates on a distribution from a qualified retirement plan?

Answer: Yes, there is. This opportunity occurs when the client holds employer stock in the plan. The Net Unrealized Appreciation (NUA) in the stock can qualify for favorable long-term capital gains tax treatment, rather than ordinary income treatment, after a distribution is taken–but only if four IRS requirements are met:

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