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Decrease in Employer Stock Value

golden eggs

“I’m familiar with employer stock and the special tax treatment for net unrealized appreciation (NUA), but what happens if the employer’s stock decreases in value?”

ERISA consultants at the Retirement Learning Center Resource Desk regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. We bring Case of the Week to you to highlight the most relevant topics affecting your business.

Highlights of discussion



Investing in employer stock within a qualified plan can subject the investor to losses, and so should be carefully considered before undertaking.  There are limited circumstances under which a plan participant may claim a loss in value to employer stocks distributed from a qualified retirement plan.