Net unrealized appreciation (NUA): NUA is the excess of the fair market value (FMV) of your company stock at the time of the transfer over its cost basis to the qualified plan's trust. This amount will be taxed when you eventually sell the stock in your taxable account. Your NUA is treated as a long-term capital gain, even if you sell your stock immediately after transfer. Please note that any appreciation above the FMV of the stock that occurs after your transfer will be considered a shirt-term capital gain if you hold onto your company stock for less than one year. If the stock is held for at least one year after the transfer, it is then characterized as a long-term capital gain.
Balance at time of distribution: This is the fair market value (FMV) of the company stock, which will be transferred from your retirement plan.
Total stock purchases (cost basis): This is the total amount you and/or your employer paid for the stock that you will be transferring. This is also referred to as the company stock's "cost basis". You retirement plan administrator is required to provide you with the amount of your cost basis. When you transfer company stock to a taxable account and use the NUA strategy, instead of rolling it to an IRA, you pay taxes at your marginal income tax rate on the cost basis of the stock. This means that if the fair market value (FMV) of the company stock shares within your 401(K) is $1,000, and the total purchase price is $200 (your cost basis), you would only initially pay taxes on the $200 cost basis. The cost basis is usually taxed as ordinary income. Unless you qualify for an exception, there may be a 10% penalty tax on the cost basis, if both of the following criteria apply:

• You are younger than age 59 1/2
• You are separated from service, from the employer providing the retirement plan, prior to the year in which you attained age 55

Please consult with your tax advisor for more details.
Rate of return: This is the expected rate of return on your company stock. This is only used to help project your future account balance and subsequent taxes.
Holding period: The number of years and months you expect to hold onto the company stock, after you have made the transfer.
Capital gains rate: This is the tax rate you expect to pay on any long-term capital gains. The current long-term capital gains tax rates are:

• 5% if your ordinary income marginal tax rate is 10% or 15%
• 15% for all ordinary income marginal tax rates greater than 15%

Please note, this calculator does not include the impact of the Alternative Minimum Tax (AMT) which can increase the effective rate you pay on capital gains. Please contact your tax advisor for more information and the possible implications.
Marginal income tax rate: This is the tax rate used to determine taxes on your taxable income (line 40, IRS Form 1040). Use the table below to help you determine your marginal income tax rate.

Filing Status and Income Tax Rates 2008 Caution: Do not use these tax rate schedules to figure 2007 taxes. Use only to figure 2008 estimates.
Tax rate	Married filing jointly or Qualified Widow(er)	Single	Head of household	Married filing separately
10%	$0 - 16,050	$0 - 8,025	$0 - $11,450	$0 - 8,025
15%	$16,051- 65,100	$8,026- 32,550	$11,451- 43,650	$8,026- 32,550
25%	$65,101- 131,450	$32,551- 78,850	$43,651- 112,650	$32,551- 65,725
28%	$131,451- 200,300	$78,851- 164,550	$112,651- 182,400	$65,726- 100,150
33%	$200,301- 357,700	$164,551- 357,700	$182,401- 357,700	$100,151- 178,850
35%	over $357,700	over $357,700	over $357,700	over $178,850

Source: http://www.irs.gov/pub/irs-drop/rp-07-66.pdf
Expected inflation rate: What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve.
Separated from Service At Age 55 or Older: Check this box if you separated from service, from the employer providing the retirement plan, in the year you attained age 55 or later. Under these circumstances, there would be no 10% penalty tax on the distribution from the retirement plan.
Retirement Plan Distribution Will Be At Age 59 1/2 or Older: Check this box if the retirement plan distribution from the retirement plan will occur on or after you reach age 59 1/2. Under these circumstances there would be no 10% penalty tax on this, or any future distributions from the retirement plan or IRA.
IRA Distribution Will Be At Age 59 1/2 or Older: Check this box if the distribution from the IRA will occur on or after you reach age 59 1/2. Under these circumstances, there would be no 10% penalty tax on the distribution.
Present Value: The amount that a future sum of money is worth today based on an assumed inflation rate. By discounting future tax distributions to present values, comparisons between alternatives are placed on a common basis.