Nike Stock in the 401(k) - When net unrealized appreciation (NUA) strategy may - or may not - make sense

Nike stock held in the 401(k) may qualify for net unrealized appreciation treatment, potentially allowing the plan’s embedded appreciation to be taxed as long-term capital gain rather than ordinary income. The article explains that NUA must be evaluated before any sale or rollover and carefully compared with an IRA rollover based on cost basis, qualifying-event and distribution requirements, current taxes, liquidity, diversification, and the risk of retaining a concentrated Nike position.