Valero Energy · Thrift Plan · Executive Planning · 2026

37% vs 20%

What most Valero executives pay

Standard IRA rollover — appreciation taxed as ordinary income on every future withdrawal

What some qualify for

NUA election — appreciation potentially taxed at long-term capital gains rate. Only available before you retire.

2026 retirement window — this decision can't wait

Most Valero executives retiring in 2026 will overpay taxes on their Thrift Plan stock. It doesn't have to be that way.

We know the Valero Thrift Plan. We know the NUA election, the cost basis mechanics, and the exact window you have to act. The calculator below shows what the difference may mean for your specific situation.

See your numbers ↓

Thrift Plan tax illustration — VLO $239.87

Shares in Thrift Plan

From your Thrift Plan statement

Cost basis per share

Ask your plan administrator

Income tax rate

Your marginal federal rate

Position value at current price $599,675

Net unrealized appreciation $429,675

Tax on NUA — IRA rollover $158,980

Tax on NUA — NUA election (20%) $85,935

$73,045

Illustrated tax difference

46% reduction vs. IRA rollover treatment — hypothetical, based on inputs above

Request a 2026 strategy briefing →

Hypothetical illustration only. Not tax advice. Consult your CPA.

Why this matters — and why timing is everything

Net Unrealized Appreciation (NUA) refers to the growth in value of employer stock held inside your Valero Thrift Plan — the difference between your original cost basis and the current fair market value at distribution.

Under standard IRA rollover treatment, every dollar of that appreciation is eventually taxed at your ordinary income rate when withdrawn. The NUA election offers a different path: by taking a qualifying lump-sum in-kind distribution of Valero stock, only your cost basis is taxed as ordinary income at distribution. The appreciation is deferred until you sell, and taxed at the long-term capital gains rate — currently 20% for most qualifying executives.

Critical timing requirement

The NUA election requires a qualifying lump-sum distribution in the same tax year as a triggering event — retirement, separation from service, or reaching age 59½. There is no retroactive election. If you roll your Thrift Plan into an IRA without evaluating NUA first, the window closes permanently.

Factor	IRA rollover	NUA election
Tax on appreciation	Ordinary income — up to 37%	LT cap gains — 20%
Tax timing	Deferred until withdrawal	Basis at distribution; NUA at sale
Deadline	None	Must execute in year of separation
Works best when	Low basis not a factor	Low basis, high appreciation, high bracket

Working with us

What a strategy briefing includes

01 —

Full-picture review

We review your Thrift Plan position, cost basis history, projected retirement timeline, and overall tax situation — not the NUA math in isolation.

45-minute session

02 —

CPA coordination guide

If NUA appears beneficial, we produce a structured memo for your tax professional covering mechanics, timing, documentation requirements, and return treatment.

Delivered within one week

03 —

Distribution coordination

We coordinate with your Thrift Plan administrator to ensure the in-kind distribution is executed cleanly in the qualifying tax year. Timing matters — we manage it.

At or before separation

Schedule a conversation

Request your 2026 strategy briefing

A focused, no-obligation session to determine whether NUA treatment may be relevant to your situation — before the window closes.

Response within one business day. No unsolicited calls.