Non Qualified Stock Options Archives

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Rethinking Whether to Exercise and Hold Non-Qualified Stock Options for Long-Term Capital Gains Tax

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Non Qualified Stock Options

When it comes to evaluating strategies to exercise your Non-Qualified Stock Options (NQSOs), what is your best plan of attack? Do you: Exercise and sell all your NQSOs immediately, cashing...

How are NQSOs taxed?

by Daniel Zajac, CFP®, EA | Last updated May 13, 2025 | FAQ

As a general rule, you will be subject to ordinary income tax on the bargain element when you exercise non-qualified options. This amount is often included in your w-2 at...

When are NQSOs taxed?

by Daniel Zajac, CFP®, EA | Last updated May 13, 2025 | FAQ

NQSOs are not taxed when they are granted. An NQSO grant means your company gives you the right (or option) to buy a set number of stock shares at a...

What is the 83(b) Election for Non-Qualified Stock Options?

by Daniel Zajac, CFP®, EA | Last updated May 13, 2025 | FAQ

Some companies will offer an early exercise provision on their NQSOs. This allows you to exercise your NQSO prior to the shares vesting. If allowed an early exercise, the 83(b)...

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Comparing Incentive Stock Options and Non Qualified Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Employee Stock Options, Incentive Stock Options, Non Qualified Stock Options

Non-qualified stock options and incentive stock options are the two types of employee stock options that you may receive as part of your compensation package. While they have some similarities,...

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How to Choose if Offered Restricted Stock Units or Non Qualified Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Employee Stock Options, Non Qualified Stock Options, Restricted Stock

Some employers may allow you to choose how you receive your equity compensation. They may allow you to receive it all in NQSOs or all in RSUs or they may...

What to Do When Your Equity Compensation Is Granted and Vested

by Daniel Zajac, CFP®, EA | Last updated May 19, 2025 | Equity Compensation, Strategies for Maximizing Equity Compensation

If you are on the receiving end of an equity compensation award, you may be overwhelmed by the amount of new information, jargon, and rules coming your way. You might...

4 Key Highlights of Employee Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Employee Stock Options

Employee stock options are a powerful tool for businesses to provide an incentive for key employees and those who contribute to a company’s success. Stock options give you the right...

Understanding the 83(b) Election for Non-Qualified Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Non Qualified Stock Options, Pre-IPO / Private Stock

If you have non-qualified stock options, you’ve likely spent time researching when and how you’ll face taxes for them. As a general rule, you will be subject to ordinary income...

5 Basics I Wish Everyone Knew About Employee Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Employee Stock Options

There is no easy way around it, employee stock options are complicated. And depending on the type of stock options you have, how many you have, other types of employee...

What You Need to Know About Employee Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Employee Stock Options

Access to employee stock options represents an agreement between you and your employer that allows you to purchase a specified number of shares of the company’s stock at a fixed...

6 Strategies to Consider to Exercise Your Employee Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Employee Stock Options

The decision to exercise your employee stock options can be a difficult one, regardless of whether you have incentive stock options or non-qualified stock options. You have to consider potential...