Equity Incentive Plans
Whether you own Incentive Stock Options (ISOs), Non-Qualified Stock Options (NSOs), Restricted Stock or Employee Stock Purchase Plans (ESPPs), understanding the tax implications and strategic planning of equity incentive plans can empower your long-term financial success.
Equity Incentive Plans
Navigating stock options and equity incentive plans can be complex, but it’s crucial to create a strategy to maximize your financial outcomes.
Our team can help you learn more about your equity incentive plan. We are dedicated to analyzing your unique circumstances and crafting tailored strategies to help you make well-informed decisions.Â
Incentive Stock Options (ISOs)
ISOs offer a unique opportunity to capitalize on company growth with favorable tax treatment if handled correctly. We help you analyze and plan the timing of ISO exercises to avoid disqualifying dispositions, which could subject you to ordinary income tax instead of the lower long-term capital gains rate. With our planning, we prepare clients for potential Alternative Minimum Tax (AMT) liabilities while preserving the benefits of ISOs.Â
- Tax benefits
- AMT planning
- Expiration & redemption timing
- Avoiding disqualifying disposition
Non-Qualified Stock Options (NSOs)
NSOs, or ISOs that have converted into NSOs, come with the potential for significant tax liabilities at ordinary income rates upon exercise. Our experts work with you to create a plan that includes timing strategies for managing potential loan options and understanding how tax recognition may be impacted.
- Funding tax liabilities
- Discussion of company outlook
Restricted Stock or RSUs
Planning for the tax impact of RSUs, whether upon vesting or through an 83(b) election at the grant or transfer date, is a critical aspect of your financial plan. We recognize that covering the payment can be challenging, depending on when the RSUs vest. Our team works with you to evaluate your entire financial situation, helping coordinate your best approach. We’ll guide you through this process, ensuring your financial plan aligns with your goals and circumstances.Â
- Evaluate an 83(b) election
- Funding tax liabilitiesÂ
- Vesting conditions
- Termination risks of forfeiture
Employee Stock Purchase Plans (ESPPs)
ESPPs under Section 423 of the IRC offer employees the chance to purchase stock at a discounted rate, but understanding the tax rules and holding periods is critical. Whether you’re dealing with ordinary income or capital gains, our team will help you navigate the complexities of ESPP taxation, allowing you to make the most of your company’s stock plan.
- Discounted shares tax treatment
- Vesting schedules
- Participation limits
Our Advantage
Your equity incentive plan can be a powerful financial tool when managed properly. Our team is here to help you make coordinated decisions regarding your equity plan, tax implications, and long-term financial goals. We can guide you through the intricacies of equity incentive planning to create your pathway for success.
Tell us your financial aspirations, and we’ll handle the rest
Our team actively manages your portfolio using tailored strategies that maximize returns and minimize risk — providing you with reports and insights every step of the way.
