If your employer has granted you incentive stock options (ISOs), you’ve likely spent time researching the tax treatment. If so, you’ve probably read about the alternative minimum tax (AMT), and qualifying and disqualifying dispositions. Perhaps the complication has left you wondering: What does this mean to me as a taxpayer?
Restricted stock units and employee stock options are commonly-awarded types of equity compensation that you may receive as part of your overall pay from your employer. While both restricted stock units and stock options are forms of equity, they each have particular features and are treated very differently from a tax perspective. Restricted stock units or awards (RSUs) typically…
If you have equity compensation, you may wonder how the value of the shares you hold may influence your tax bill — or how vesting, exercising, and selling your shares may impact the value of your award..
If you have equity compensation as part of your benefits package, you’ve likely spent time considering when it might be best to take action and maximize the value of these potential assets. Deciding the.
A new year can be an opportune time to review your equity compensation package. Not only does this give you a clean slate to work with, but it also affords you the most time to plan and implement your strategy for the fresh calendar year ahead. When it comes to annual...
If you have employee stock options, you’ve probably spent time considering the absolute best time to exercise those options -- and from there, whether you should sell or hold your shares. Answering the question of “when” -- when to exercise, and when to sell -- is...
No one likes to see a stock they own go down in value. When we buy stock, we hope the price rises so we can earn a profit on our purchase. It’s bad enough, then, when our share prices fall instead. But what’s potentially even worse? Seeing those falling stock prices...
Traditional retirement planning is grounded in the belief that if you save early and save often, you’ll accumulate enough wealth to retire with the lifestyle that you want. Many people try to achieve this feat by funneling a percentage of their paycheck into a 401(k)...
If you own company stock or employee stock options, it’s possible that you have experienced market volatility and have seen firsthand how a quick change in the stock price can materially impact the value of your stock options. A rising stock price can quickly change the value of your stock options positively. Potentially to such an effect that it can create a concentrated equity position that should be evaluated.
Restricted stock units are a great way for companies to add an incentive to employee compensation packages. If you are receiving restricted stock units from your employer, understanding the various unfamiliar terms and tax consequences are important to maximizing their value.
Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.
Understand what you have, what you should consider, and what ultimately matters to you.
I write about equity compensation and employee stock options in a way that is easy to understand.
Understand what you have, what you should consider, and what ultimately matters to you.
Get the Ultimate Guide to Incentive Stock Options to better understand your equity compensation.
