What is an 83(b) election? An 83(b) election is a way to potentially limit your tax liability for gains on shares of company stock. It allows you to pay taxes on shares before they vest, when their value may be still relatively low. You may choose to file an 83(b) ...
Restricted stock awards (RSAs) and restricted stock units (RSUs) are two types of incentive programs that are common in startup companies. While similar, there are some key differences in how these benefits are delivered and taxed. Both require careful tax and ...
Your company is going public. Whether that happens via a SPAC or the traditional IPO process, you have several important decisions to make in the near future. There are some key differences between the two processes, however, that can affect how you manage your stock ...
If you have pre-IPO shares of your company’s stock, you may be wondering when you’ll be able to cash in. Here are the basics you should know about the IPO lockup period and the importance of planning ahead for share sales. What is an IPO lockup period? A lockup period ...
To stay on track to meet your retirement goals, it’s important to make a regular habit of reviewing your 401(k) portfolio. This helps ensure that you’re putting enough aside and that you have the best mix of investments to meet your financial objectives. If you haven’t ...
Many companies that offer stock options as part of their compensation packages allow employees to exercise those options before they vest. This practice is known as early exercise, and many employees in pre-IPO companies have successfully used it to avoid hefty tax ...
Congratulations, your company has finally gone public! At this essential turning point in your financial journey, it’s important to reassess your financial goals and priorities through the lens of your new circumstances. Seeking advice from experienced and trusted ...
Alpha is elusive. Some advisors claim they’ve achieved it, only to have it slip through their fingers. Many of the most prestigious investment firms have spent billions developing algorithms trying to track it down. When alpha appears, it comes down to fractions of a ...
If your company offers an employee stock purchase plan (ESPP), it could provide a path to future wealth. Like any investment, however, participating in an ESPP carries risk. Before signing up, you should understand how an ESPP works, the specific provisions of the plan ...
A grantor retained annuity trust (GRAT) can allow you to avoid large amounts of gift or estate tax while transferring high-value investments to the next generation. Changing Estate Tax Law While most families don’t have to worry about estate taxes, they can put a ...
We have previously explained the benefits of ISOs and how they differ from NSOs, but there is still an important difference to discuss. When ISOs are exercised and held for one year (two years from the grant date), the gain receives capital gain treatment, while NSO ...
The sudden onset of a global pandemic has shaken up economies around the world. When COVID-19 tightened its grip in February and March, markets plunged deeply, dashing—or at least delaying—the hopes of many investors who had anticipated public offerings this year. What ...