Planning Services

We provide tailored financial solutions and independent, world-class investment advice. Our highly personalized services, extensive experience, and sophisticated investment strategies offer clients the experience of a private investment office. Meanwhile, our firm's affiliation with Wells Fargo Bank provides access to all the stability, transparency, and expansive resources of a globally renowned, well-capitalized institution.

Building on Strengths

  • 45% of U.S. millionaires are women1
  • 42% of women are their family’s primary breadwinner2
  • Women control $14 trillion of U.S. personal wealth3

When asked to rate their own investor experience level, far fewer women say they have a higher level of experience. This perceived lack of experience has consequences – more woman than men are fearful of a market downturn, women tend to expect lower returns on their investments, and women are more likely to say they are afraid to take investment risks in hopes of generating higher returns.4

Yet, according to data from the World Health Organization, women tend to live longer than men, meaning that their investment assets will have to last longer. Women generally have a longer investment time horizon than men of the same age, so women may benefit from becoming more comfortable with growth assets, such as stocks, in order to meet their financial goals.

  • Women tend to earn higher returns on their investments for the risks they take
  • Women tend to be more willing to seek education and advice from investment professionals

Learn more about Investing

The Salon Magura Wealth Management group can help you understand the basics of investing – things like setting aside enough cash for an emergency, defining your time horizon and risk tolerance, and developing an appropriate asset allocation.

We can help you set investment goals that fall into the categories of income, growth, or a mix of the two. Moreover, each of your investment goals will generally have an associated time period that helps determine what type of assets you should potentially use to assist you in your investment goals with the appropriate level of risk.

1Source: The American College, 2010
2Source: Center for American Progress analysis of data from the U.S. Census Bureau, 2015
3Source: BMO Wealth Institute, 2015
4Wells Fargo/Gallup Investor and Retirement Optimism Index, November 2018.

Building on Strengths

  • 45% of U.S. millionaires are women1
  • 42% of women are their family’s primary breadwinner2
  • Women control $14 trillion of U.S. personal wealth3

When asked to rate their own investor experience level, far fewer women say they have a higher level of experience. This perceived lack of experience has consequences – more woman than men are fearful of a market downturn, women tend to expect lower returns on their investments, and women are more likely to say they are afraid to take investment risks in hopes of generating higher returns.4

Yet, according to data from the World Health Organization, women tend to live longer than men, meaning that their investment assets will have to last longer. Women generally have a longer investment time horizon than men of the same age, so women may benefit from becoming more comfortable with growth assets, such as stocks, in order to meet their financial goals.

  • Women tend to earn higher returns on their investments for the risks they take
  • Women tend to be more willing to seek education and advice from investment professionals

Learn more about Investing

The Salon Magura Wealth Management group can help you understand the basics of investing – things like setting aside enough cash for an emergency, defining your time horizon and risk tolerance, and developing an appropriate asset allocation.

We can help you set investment goals that fall into the categories of income, growth, or a mix of the two. Moreover, each of your investment goals will generally have an associated time period that helps determine what type of assets you should potentially use to assist you in your investment goals with the appropriate level of risk.

1Source: The American College, 2010
2Source: Center for American Progress analysis of data from the U.S. Census Bureau, 2015
3Source: BMO Wealth Institute, 2015
4Wells Fargo/Gallup Investor and Retirement Optimism Index, November 2018.

It starts with a plan

Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you.

  • Developing your retirement income strategy is part of the Envision® process.
  • We can help you analyze possible expenses and sources of income.
  • Checking on your strategy annually can help you maintain course.


Our Envision planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:

  • When and how can I retire with confidence?
  • How can I help make my money last as long as I’m retired?
  • Where will my income come from?
  • How do I prepare for and respond to events throughout retirement?
  • When and how should I address my legacy goals?

7 common retirement planning moves

Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.

  1. Monitor your portfolio
  2. Maintain emergency savings
  3. Set an appropriate asset allocation
  4. Itemize your income plan
  5. Clean up your accounts
  6. Sell assets strategically
  7. Talk with family

Common risks to address

While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course.

Have an ongoing process

Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.

Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.

Next steps

  • Think about what you hope your retirement will be.
  • Write down all your possible sources of income and expenses in retirement.
  • Take a look at your portfolio and call us if you have any questions about changing your asset allocation.
  • Call us to start on your personalized retirement income plan.

Wells Fargo Advisors does not provide tax or legal advice.

Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.

It starts with a plan

Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you.

  • Developing your retirement income strategy is part of the Envision® process.
  • We can help you analyze possible expenses and sources of income.
  • Checking on your strategy annually can help you maintain course.


Our Envision planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:

  • When and how can I retire with confidence?
  • How can I help make my money last as long as I’m retired?
  • Where will my income come from?
  • How do I prepare for and respond to events throughout retirement?
  • When and how should I address my legacy goals?

7 common retirement planning moves

Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.

  1. Monitor your portfolio
  2. Maintain emergency savings
  3. Set an appropriate asset allocation
  4. Itemize your income plan
  5. Clean up your accounts
  6. Sell assets strategically
  7. Talk with family

Common risks to address

While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course.

Have an ongoing process

Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.

Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.

Next steps

  • Think about what you hope your retirement will be.
  • Write down all your possible sources of income and expenses in retirement.
  • Take a look at your portfolio and call us if you have any questions about changing your asset allocation.
  • Call us to start on your personalized retirement income plan.

Wells Fargo Advisors does not provide tax or legal advice.

Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.

Benefits of a Managed Portfolio

By appointing experienced investment professionals to provide you with sound investment advice, manage your portfolio and rebalance your investment mix when necessary, you free yourself from the time-consuming task of choosing and actively monitoring your investments.

After allocating your investments, your Portfolio Manager continually manages your portfolio, monitors the markets and manages performance. As part of this process, your Portfolio Manager ensures that your portfolio remains invested in financial instruments most suited to your current needs and objectives.

Since no one manager/investment program is suitable for all types of investors, this information is provided for informational purposes only. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers/investment programs to you.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets.

Benefits of a Managed Portfolio

By appointing experienced investment professionals to provide you with sound investment advice, manage your portfolio and rebalance your investment mix when necessary, you free yourself from the time-consuming task of choosing and actively monitoring your investments.

After allocating your investments, your Portfolio Manager continually manages your portfolio, monitors the markets and manages performance. As part of this process, your Portfolio Manager ensures that your portfolio remains invested in financial instruments most suited to your current needs and objectives.

Since no one manager/investment program is suitable for all types of investors, this information is provided for informational purposes only. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers/investment programs to you.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets.

What should you know before creating an estate plan?

Everyone needs an estate plan. When estate planning makes the news, it’s often because someone famous has passed away and stories then crop up about what a good, bad, or unusual job of estate planning he or she did.

Unfortunately, associating estate planning with famous people tends to feed the myth it’s just for the wealthy. In fact, estate planning is really for everyone.

Even if you don’t consider yourself well-to-do, consider all the assets you own: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, your house, cars, jewelry, family heirlooms, etc. Your estate includes all this and more. Your estate plan can determine what happens to all these assets when you die.

A good estate plan will also focus on taking care of you as you age or if you become ill or incapacitated. Whether you’re wealthy or not has little to do with it.

“Developing an estate plan is about taking control. You are controlling how assets are managed and distributed, along with who will handle these tasks when you are unable to do so,” says Deborah Lauer, Planning and Life Events Specialist for Wells Fargo Advisors.

More than just assets

Asset management is just part of the picture. For parents, having a will is the only way to name a guardian to raise your minor children if both parents die.

A well-designed plan will also include documents designating who can communicate with health care professionals and make decisions about what type of care you should receive if something happens and you can’t make those decisions yourself.

Ultimately, if you don’t make your own plan, your family may be left scrambling at an already difficult time. Someone will have to ask a court to decide who will act as guardian for your minor children (or maybe even for you), and state law will determine what becomes of your assets.

Bottom line: If you don’t decide, someone will decide for you.

Remember, establishing a plan is only the beginning. Significant life events are likely to call for changes to your plan. Lauer explains, “It’s important to regularly review your plan to ensure it continues to meet your needs. You need to consider whether your plan documents, asset titling, and beneficiary designations allow your assets to be distributed according to your wishes.”

Five essential documents

Your situation’s complexity will determine which documents your plan requires; however, these five are often essential:

A will provides instructions for distributing your assets to your beneficiaries when you die. In it, you name a personal representative (executor) to pay final expenses and taxes and distribute your remaining assets.

A durable power of attorney lets you give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.

A health care power of attorney lets you choose someone to make medical decisions for you if you are unable to communicate your wishes, or don’t have legal capacity to make treatment decisions for yourself.

living will expresses your intentions regarding the use of life-sustaining measures if you are terminally ill. It doesn’t give anyone the authority to speak for you.

By transferring assets to a revocable living trust, you can provide for continued management of your financial affairs during your lifetime and after your death — possibly for generations to come.

Turn to a team of professionals

The notion of making the decisions involved with estate planning may seem intimidating at first, but it doesn’t have to be.

The key is to rely on a team of trusted professionals, including a financial advisor, estate planning attorney, and accountant. They know the questions to ask and can help you avoid potential pitfalls.

If you don't currently have relationships with these individuals, a financial advisor is a good place to start. He or she can discuss his or her role in the planning process and can refer you to an estate planning attorney who can work with you to draw up the necessary documents.

Next steps

  • Talk with a Financial Advisor about your estate planning goals.
  • He or she can provide referrals to local estate planning attorneys.

Trust services available through banking and trust affiliates in addition to non-affiliated companies of Wells Fargo Advisors.

Wells Fargo Advisors and its affiliates do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences.

What should you know before creating an estate plan?

Everyone needs an estate plan. When estate planning makes the news, it’s often because someone famous has passed away and stories then crop up about what a good, bad, or unusual job of estate planning he or she did.

Unfortunately, associating estate planning with famous people tends to feed the myth it’s just for the wealthy. In fact, estate planning is really for everyone.

Even if you don’t consider yourself well-to-do, consider all the assets you own: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, your house, cars, jewelry, family heirlooms, etc. Your estate includes all this and more. Your estate plan can determine what happens to all these assets when you die.

A good estate plan will also focus on taking care of you as you age or if you become ill or incapacitated. Whether you’re wealthy or not has little to do with it.

“Developing an estate plan is about taking control. You are controlling how assets are managed and distributed, along with who will handle these tasks when you are unable to do so,” says Deborah Lauer, Planning and Life Events Specialist for Wells Fargo Advisors.

More than just assets

Asset management is just part of the picture. For parents, having a will is the only way to name a guardian to raise your minor children if both parents die.

A well-designed plan will also include documents designating who can communicate with health care professionals and make decisions about what type of care you should receive if something happens and you can’t make those decisions yourself.

Ultimately, if you don’t make your own plan, your family may be left scrambling at an already difficult time. Someone will have to ask a court to decide who will act as guardian for your minor children (or maybe even for you), and state law will determine what becomes of your assets.

Bottom line: If you don’t decide, someone will decide for you.

Remember, establishing a plan is only the beginning. Significant life events are likely to call for changes to your plan. Lauer explains, “It’s important to regularly review your plan to ensure it continues to meet your needs. You need to consider whether your plan documents, asset titling, and beneficiary designations allow your assets to be distributed according to your wishes.”

Five essential documents

Your situation’s complexity will determine which documents your plan requires; however, these five are often essential:

A will provides instructions for distributing your assets to your beneficiaries when you die. In it, you name a personal representative (executor) to pay final expenses and taxes and distribute your remaining assets.

A durable power of attorney lets you give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.

A health care power of attorney lets you choose someone to make medical decisions for you if you are unable to communicate your wishes, or don’t have legal capacity to make treatment decisions for yourself.

living will expresses your intentions regarding the use of life-sustaining measures if you are terminally ill. It doesn’t give anyone the authority to speak for you.

By transferring assets to a revocable living trust, you can provide for continued management of your financial affairs during your lifetime and after your death — possibly for generations to come.

Turn to a team of professionals

The notion of making the decisions involved with estate planning may seem intimidating at first, but it doesn’t have to be.

The key is to rely on a team of trusted professionals, including a financial advisor, estate planning attorney, and accountant. They know the questions to ask and can help you avoid potential pitfalls.

If you don't currently have relationships with these individuals, a financial advisor is a good place to start. He or she can discuss his or her role in the planning process and can refer you to an estate planning attorney who can work with you to draw up the necessary documents.

Next steps

  • Talk with a Financial Advisor about your estate planning goals.
  • He or she can provide referrals to local estate planning attorneys.

Trust services available through banking and trust affiliates in addition to non-affiliated companies of Wells Fargo Advisors.

Wells Fargo Advisors and its affiliates do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences.

Nobody’s favorite topic

Skimping on insurance or putting off coverage decisions until later is common – and reasons for it aren’t hard to come by.

  • Insurance is an important part of retirement and legacy planning.
  • Life insurance, disability insurance, and long-term-care insurance can play a significant role in helping preserve and achieve your financial goals.

Although insurance is, by nature, an uncomfortable thought – one steeped in life’s unknowns – it plays an integral role in a well-rounded financial strategy.

Protecting your path

Think of insurance this way:

You’re heading toward retirement on a road – your personal savings. The well-financed route may be your path to the future – your retirement plan. It twists and turns along the way as you pursue goals and dreams, handle living expenses, and deal with life’s detours.

But what happens if your path is cut short by an untimely accident or illness? Or wiped out by the death of you or your spouse and the accompanying loss of an income stream? Or if life events or health issues force you to change course or redirect savings toward unexpectedly lengthy detours from your planned path forward?

That’s where insurance can come in. When planned wisely, insurance may help cover the expected and unexpected events on life’s journey – and help you stay on course financially.

Life insurance

Putting off life insurance decisions is more than just a coverage risk. It could also cost you considerably more in the long run. Almost without exception, insurance may be more affordable when you’re younger and healthier. Typically, the older you are or the more health issues you face, the steeper your premiums may be, if you are able to obtain coverage at all.

Life insurance comes in two forms: term and permanent. The first, as its name implies, provides financial protection for a limited period of time, usually 10, 20, 30 years. Permanent life insurance, on the other hand, provides protection throughout your lifetime as long as premiums are paid. With permanent policies, you may be able to build equity, or “cash value,” over time.

Depending on the type of policy, the cash value can potentially grow, tax-deferred, and may be accessed through tax-free withdrawals and/or loans.

It offers other potential financial options and benefits:

  • Funding source for major life purchases or expenses such as a home purchase or small business build-out
  • Flexible retirement spending
  • Loan collateral
  • College savings – especially since it’s typically not considered an asset in federal college financial aid calculations and could help you qualify for more aid
  • Long-term care premiums (through a tax-free 1035 exchange)
  • Income tax-free legacy funds

Disability insurance

A disability claim during your working years can seriously impede your income stream – even dry it up. According to the Council for Disability Awareness, more than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age1. The average individual disability claim lasts 34.6 months.2

An insurable disability can include any condition that makes it impossible for you to perform your work duties – everything from a back injury to depression to cancer.

If you’re covered under a group disability policy, you’re typically eligible for up to 60% of your salary, but payouts may not start immediately. To make up for losses during a group policy waiting period as well as the remainder of your income once payouts begin, you’d need coverage under a supplemental disability insurance policy.

Keep in mind, group policies are often hampered by qualifiers. For example, “own occupation” policies pay if you’re unable to perform your current job duties. “Any occupation” policies, on the other hand, only pay out if you can’t work in any job deemed reasonably suitable for you.

If you don’t have the financial means to live comfortably without income until you retire should you ever become disabled, you may want to consider disability policies that last until at least age 62.

Long-term care insurance

As life expectancies continue to climb, the probability you or your spouse will require home health care or nursing-home care may be greater than you think.

While most people are aware of rising health care costs, many have not prepared adequately for the risk of substantial long-term care costs arising in the future – costs Medicare doesn’t cover.

The average cost of a nursing home stay is $82,128 annually for a semi-private room.3

For many – if not most – people, long-term care coverage is the best way to help protect against potentially devastating costs of extended care later in life. Like some other types of insurance, purchasing early may lead to savings down the road.

A critical planning component

Next time you review your retirement plan, don’t forget to consider your insurance needs. Life, disability, and long-term care insurance can all help protect your financial goals to and through retirement and beyond.

Next steps

  • Determine your insurance needs.
  • Ask a financial professional for help finding the right insurance coverage for your needs.
1Social Security Administration, Disability and Death Probability Tables for Insured Workers Born in 1997, Table A. http://disabilitycanhappen.org/disability-statistic/ 
2 http://disabilitycanhappen.org/overview/ 
3LongtermCare.gov, Cost of Care, https://longtermcare.acl.gov/costs-how-to-pay/costs-of-care.html 
Insurance products are offered through non-bank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.

Wells Fargo Advisors is not a legal or tax advisor.

Tax Optimization Planning

There are many strategies that may be appropriate for high-net-worth tax planning strategies. We may choose professionals who believe in holding concentrated portfolios and/or low portfolio turnover to manage your investments. We may continually look for tax-loss harvesting opportunities designed to further increase your portfolio's tax effectiveness. Or, we may place your investments into entities for estate planning and wealth transfer purposes that seek to ensure as much of your irreplaceable capital as possible is passed on to your family or your charity.

Whatever the decision, we work to ensure a unique investment plan and tax-efficient strategy that’s right for you and your family.

Tax Optimization Planning

There are many strategies that may be appropriate for high-net-worth tax planning strategies. We may choose professionals who believe in holding concentrated portfolios and/or low portfolio turnover to manage your investments. We may continually look for tax-loss harvesting opportunities designed to further increase your portfolio's tax effectiveness. Or, we may place your investments into entities for estate planning and wealth transfer purposes that seek to ensure as much of your irreplaceable capital as possible is passed on to your family or your charity.

Whatever the decision, we work to ensure a unique investment plan and tax-efficient strategy that’s right for you and your family.

Decide which option is right for you

If you’re changing jobs or retiring, you’ll need to decide what to do with assets in your 401(k) or other qualified employer-sponsored retirement plan (QRP). These savings can represent a significant portion of your retirement income, so it’s important you carefully evaluate all of the options.

Generally, you have four options:

  • Roll the assets to an Individual Retirement Account (IRA)
  • Leave the funds in your former employer’s retirement plan (if allowed)
  • Move savings to your new employer’s plan (if allowed)
  • Withdraw or “distribute” the money

Roll the assets to an IRA

Rolling your retirement savings to an IRA provides the following features:

  • Assets continue their tax-advantaged status and growth potential
  • You can continue to make annual contributions, if eligible
  • An IRA often gives you more investment options than are typically available in an employer’s plan
  • You also may have access to investment advice


Before rolling your assets to an IRA consider the following:

  • IRA fees and expenses are generally higher than those in your employer’s retirement plan
  • Loans from an IRA are prohibited
  • In addition to ordinary income, distributions prior to age 59 1/2 may be subject to a 10% IRS tax penalty
  • IRAs are subject to state creditor laws
  • If you own appreciated employer securities, favorable tax treatment of the net unrealized appreciation (NUA) is lost if rolled into an IRA

Leave the funds with your former employer

You may be able to leave your retirement plan savings in your former employer’s plan, assuming the plan allows and you are satisfied with the investment options. You will continue to be subject to the plan’s rules regarding investment choices, distribution options, and loan availability.

Keeping assets in the plan features:

  • Investments keep their tax-advantaged growth potential
  • You retain the ability to leave your savings in their current investments
  • You may avoid the 10% IRS early distribution penalty on withdrawals from the plan if you leave the company in the year you turn 55 or older (age 50 or older for certain public safety employees)
  • Generally, have bankruptcy and creditor protection
  • Favorable tax treatment may be available for appreciated employer securities owned in the plan

Move savings to your new employer’s plan

If you’re joining a new company, moving your retirement savings to your new employer’s plan may make sense. This may be appropriate if:

  • You want to keep your retirement savings in one account
  • You’re satisfied with the investment choices offered by your new employer’s plan


This alternative shares many of the same advantages and considerations of leaving your money with your former employer. In addition, there may be a waiting period for enrolling in your new employer’s plan. Investment options are chosen by the QRP sponsor and you must choose from those options.

Withdraw or “distribute” the money

Carefully consider all of the financial consequences before cashing out. The impact will vary depending on your age and tax situation. Distributions prior to age 59 1/2 may be subject to both ordinary income taxes and a 10% IRS tax penalty. If you must access the money, consider withdrawing only what you need until you can find other sources of cash.

Features

  • You have immediate access to your retirement savings and can use however you wish.
  • Although distributions from the plan are subject to ordinary income taxes, penalty-free distributions can be taken if you turn:
    • Age 55 or older in the year you leave your company.
    • Age 50 or older in the year you stop working as a public safety employee (certain local, state or federal) — such as a police officer, firefighter, emergency medical technician, or air traffic controller — and are taking distributions from a governmental defined benefit pension or governmental defined contribution plan. Check with the plan administrator to see if you are eligible.
  • If you own employer securities, a distribution may qualify for the favorable tax treatment of NUA.

Keep in mind

  • Your former employer is required to withhold 20% of your distribution for federal taxes.
  • Distribution may be subject to federal, state and local taxes unless rolled over to an IRA or another employer plan within 60 days.
  • Your investments lose their tax-advantaged growth potential.
  • Your retirement may be delayed, or the amount you’ll have to live on later may be reduced.
  • Depending on your financial situation, you may be able to access a portion of your funds while keeping the remainder saved in a retirement account. This can help lower your tax liability while continuing to help you save for your retirement. Ask your plan administrator if partial distributions are allowed.
  • If you leave your company before the year you turn 55 (or age 50 for public service employees), you may owe a 10% IRS tax penalty on the distribution.

What to consider if you own company stock

Net unrealized appreciation (NUA) is defined as the difference between the value at distribution of the employer security in your plan and the stock’s cost basis. The cost basis is the original purchase price paid within the plan. Assuming the security has increased in value, the difference is NUA. NUA of employer securities received as part of an eligible lump-sum distribution from an employer retirement plan qualifies for special tax treatment. In most cases, NUA will be available only for lump-sum distributions — partial distributions do not qualify.

We can help educate you so you can decide which option makes the most sense for your specific situation.

Next steps

  • Learn about your choices before taking a distribution
  • Pay special attention to taxes, penalties and fees associated with each action
  • Contact us or your tax professional if you have questions about how to proceed
When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty free distributions are available, treatment of employer stock, when required minimum distributions begin, protection of assets from creditors, and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with employer-sponsored retirement plans. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets. Withdrawals are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59 1/2.

Wells Fargo Advisors does not provide tax or legal advice. Please consult with your tax and legal advisors to determine how this information may impact your own situation.