1. Taxes, which are due as a result of the transfer of company stock from a retirement plan to a taxable account, will be paid from outside sources. In other words, a portion of the company stock is not sold to obtain the money necessary to pay the taxes.
2. The entire distribution consists of company stock.
3. The distribution is in the form of a "lump sum". A lump sum distribution is defined by the IRS as the distribution payment, within a single tax year, of a plan participant's entire balance from all of the employer's qualified plans of one kind (pension, profit sharing, or stock bonus plans).

Net unrealized appreciation (NUA)

NUA is the difference between the current market value (CMV) of your company stock at the time of the transfer and its cost basis. This amount will be taxed when you eventually sell the stock in your taxable account. Your NUA is considered a long-term gain, even if you liquidate your stock immediately after transfer. Please note that any appreciation above the CMV of the stock that occurs after your transfer will be considered a short-term capital gain if you hold onto the 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 current market value (CMV) 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". Your retirement plan administrator is required to provide you with the value 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 current market value (CMV) 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 you meet both the following criteria:

• 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 2007 Caution: Do not use these tax rate schedules to figure 2006 taxes. Use only to figure 2007 estimates.
Tax rate	Married filing jointly or Qualified Widow(er)	Single	Head of household	Married filing separately
10%	$0 - 15,650	$0 - 7,825	$0 - $11,200	$0 - 7,825
15%	$15,651- 63,700	$7,826- 31,850	$11,201- 42,650	$7,826- 31,850
25%	$63,701- 128,500	$31,851- 77,100	$42,651- 110,100	$31,851- 64,250
28%	$128,501- 195,850	$77,101- 160,850	$110,101- 178,350	$64,251- 97,925
33%	$195,851- 349,700	$160,851- 349,700	$178,351- 349,700	$97,926- 174,850
35%	over $349,700	over $349,700	over $349,700	over $174,850

This is the tax rate used to determine taxes on your taxable income (line 40, IRS Form 1040). To get the current tax rates click here.

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 2006.

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.

Initial Distribution Will Be At Age 59 1/2 or Older

Check this box if the initial 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.

Final 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.