U.S. · Form 1099-R box 6
1099-R box 6 net unrealized appreciation.
NUA in employer stock: in box 1, out of box 2a, and in its own box.
Box 6 is the NUA on employer stock that came out of a qualified plan. The payer includes the NUA in box 1 but not in box 2a, and reports it in box 6. For a lump-sum distribution the payer enters all the NUA; otherwise only the NUA attributable to employee contributions. Box 6 is not completed for a direct rollover.
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Result
Box 6 rules
| Topic | What the IRS instructions say |
|---|---|
| When box 6 is used | When a distribution from a qualified plan (except a qualified distribution from a designated Roth account) includes securities of the employer corporation, or a subsidiary or parent, and the payer can compute the NUA. |
| Lump-sum distribution | Enter all the NUA in employer securities. |
| Not a lump-sum distribution | Enter only the NUA attributable to employee contributions. |
| Relationship to box 1 | Include the NUA in box 1. |
| Relationship to box 2a | Do not include the NUA in box 2a, except for a direct rollover to a Roth IRA or a designated Roth account in the same plan. |
| Direct rollover | The payer does not have to complete box 6. |
| Mixed distribution of stock and cash | Box 1 shows the cash and fair market value of property (including employer securities), box 2a shows the gross less any NUA, box 5 is blank, and any NUA is in box 6. |
| Only employer securities distributed | Show the FMV of the securities in boxes 1 and 2a and make no entry in box 5 or 6 (from the IRS instructions for losses). |
| Where the NUA is determined | Regulations section 1.402(a)-1(b), with Notice 89-25, Q/A-1. |
| Withholding | NUA excludable from gross income under section 402(e)(4) is not included in the amount of an eligible rollover distribution subject to 20% withholding. |
Why NUA is in box 1 but not box 2a
NUA is the net unrealized appreciation in the employer securities; Regulations section 1.402(a)-1(b) governs how it is determined. The instructions keep it out of the taxable amount in box 2a, report it separately in box 6, and still include it in box 1 so box 1 shows the full value that left the plan. The same instructions cite section 402(e)(4) for NUA excludable from gross income.
Worked example
A departing employee takes a lump sum of $40,000 in cash and employer stock worth $60,000, with $45,000 of NUA. Using the mixed-distribution rule: box 1 $100,000, box 2a $55,000 ($100,000 less $45,000), box 5 blank, box 6 $45,000. If the employee had instead directly rolled the whole balance over, box 6 would not be completed. Figures are illustrative.
What this page does not decide
The box 6 figure is only the payer’s computation. How NUA is taxed when the stock is sold, and whether the strategy suits you, depends on your tax facts. The sources below go no further than reporting.
Sources
- Instructions for Forms 1099-R and 5498 (2026): Table 1 distribution codes and the instructions for the 1099-R boxes covered above. Read November 2, 2026.
IRS page last reviewed June 23, 2026. This is the 2026 edition of the instructions, written for forms filed for 2026 distributions; the IRS revises it each year, so check the current edition before relying on a code.
Frequently asked questions
What is box 6 on Form 1099-R?
Box 6 shows net unrealized appreciation in employer’s securities distributed from a qualified plan.
Is NUA included in the taxable amount in box 2a?
No, with one exception. The instructions say to include NUA in box 1 but not in box 2a, except for a direct rollover to a Roth IRA or a designated Roth account in the same plan.
Is box 6 filled in for a direct rollover?
No. The payer does not have to complete the NUA box for a direct rollover.
How much NUA goes in box 6?
All of it for a lump-sum distribution; otherwise only the NUA attributable to employee contributions.
Does box 6 apply to Roth 401(k) distributions?
Not to qualified distributions from a designated Roth account, which the instructions exclude from box 6.
Not tax or legal advice
This page summarizes IRS instructions to payers and is not tax, legal or financial advice. A CPA, enrolled agent or the payer can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.