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Life Events

Life Events explores the role stock grants play in the financial planning for a variety of major personal occurrences.

Browse an overview of this section below, or explore the subsections to the left.

Major topics covered include retirement and retirement plans; paying higher-education costs with stock grants; divorce and its impact; death and the death taxes on your estate; and disability.

Test Your Knowledge Test and improve your knowledge with our Life Events quiz and its study guide in the answer key.

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Retirement Planning With Stock Options And RSUs (Part 1: Pre-Retirement)

Carol Cantrell
Stock compensation can help you save for retirement. Understand the issues and explore strategies that can help your retirement funding.

Strategic Planning With Roth IRAs And Stock Compensation (Part 1)This is premium content

Sue Stevens
Could the Roth IRA be your greatest opportunity for accumulating tax-free growth? Well, as with most strategic-planning issues, it all depends. Part 1 of this two-part article series looks at the rules and factors to consider in a Roth IRA conversion.

UPDATES! Funding Your Child's College Education With Stock Options And Other Stock Grants (Part 1)

Troy Onink
Podcast included! Your ability to pay for college, and ultimately have more money for retirement, may rest on your company's stock plan and related financial planning. Part 1 helps you understand the impact that equity grants have on financial-aid eligibility.

Stockbrokers' Secrets: Retirement Planning With Stock Compensation (Part 1)This is premium content

John P. Barringer
Podcast included! Many of my clients do not see stock compensation in the bigger picture of retirement savings and withdrawal plans. Considering net worth, age, and company stock plan, I present the client with these core points about stock grants, 401(k) plans, nonqualified deferred compensation, and IRAs.

Retirement Planning With Your Stock Options And Other Stock Compensation (Part 2: Retirement Year)This is premium content

Carol Cantrell
Once you reach your retirement year, the decision landscape and timeframe change. To avoid unpleasant surprises, understand what will happen to your stock grants and other company benefits so that you can develop appropriate strategies.

Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)This is premium content

Carol Cantrell
Tax planning for retirees can be more challenging that it was during their working years. You need to constantly monitor any options and company stock holdings as part of your overall portfolio. Part 3 looks at special issues that can arise after you retire, including Social Security; coordinating with required minimum distributions for IRAs and your 401(k); moving to another state; and the gifting of stock.

NEW! Living And Working In Multiple States: Challenges For Mobile Employees In The USAThis is premium content

David Johnson and Mark Miller
Podcast included! Moving between US states, whether to relocate permanently or simply to travel for business, can involve tax complications for people who have stock compensation. This article presents the tax issues that you may encounter when you leave your home office and cross a state line.

A Holistic Approach To Managing Equity CompensationThis is premium content

Geoffrey M. Zimmerman
Podcast included! Planning for equity compensation begins with identifying the role stock grants will play in your life, whether for retirement, college funding, or other goals. This article offers points to consider for three different types of investors.

Strategic Planning With Roth IRAs And Stock Compensation (Part 2): A Case StudyThis is premium content

Sue Stevens
Weighing a Roth IRA conversion is complicated enough, but the complexity can explode when you add in stock option exercises or the vesting of restricted stock. Let's take a look at how this can work in real life through a case study.

NEW! Disability And Death: What Happens To Stock Options, Restricted Stock/RSUs, And ESPP Participation?This is premium content

myStockOptions Editorial Team
Disability and death are subjects that few people like to think about, but they are important topics for employees who have stock compensation. Every stock plan has provisions on the treatment of equity compensation in the case of these life events, so you and your family members should understand those plan features just in case they come into play. This article presents the common ways in which stock plans treat grants upon the disability or death of employees.

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NEW! What are the top 10 questions related to retirement planning that I should ask about my stock options, restricted stock/RSUs, or ESPP participation?

Retirement savings can be significantly boosted by equity compensation. When factoring stock options, restricted stock/RSUs, or ESPPs into your retirement planning, you should know the answers to the following questions...

What would happen to my unvested restricted stock or RSUs if I were to die or become disabled before the vesting date?This is premium content

The treatment of unvested restricted stock and RSUs upon death or disability depends on the terms of your stock plan and the specifics of your grant agreement. In its 2013 Stock Plan Design Survey, the National Association of Stock Plan Professionals observed the following related practices among the companies in its survey group...

After my death, at what times might my stock options be taxed?

Stock options that you hold when you die can be taxed twice...

How do stock grants affect Roth IRA contributions and conversions?This is premium content

The grant itself has no impact. The compensation income generated from exercise or vesting can affect...

After I retire, will my company let my stock options or restricted stock continue to vest, or will it accelerate the vesting?This is premium content

Retirement is a type of termination of employment...

UPDATES! To seek financial aid for my children's college tuition, I need to report my income and assets to the US Department of Education on the Free Application for Federal Student Aid (FAFSA). Should I list my stock grants? At what value?This is premium content

As long as the student is considered a dependent of the parent for financial-aid purposes, the parent does have to report stock options on line...

What would happen to my vested stock options if I were to die before exercising them?

You need to review the terms of your company's plan and your grant agreement. In most cases, the options...

Is my spouse entitled to part of my stock options and other stock grants upon our divorce?

While there are some general trends, the treatment of stock options, restricted stock, and other equity awards in divorce is far from similar in all states. In general, the outcome depends on four factors...

What happens to my stock grants if I become temporarily disabled?

Under some stock plans, if you are temporarily disabled and your employment is not terminated, you...

How do stock options, ESPPs, and restricted stock differ from the company stock fund or contribution offered under my 401(k) plan?This is premium content

401(k) plans are a type of broad-based, tax-qualified retirement plan funded by pre-tax contributions, unlike...

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