3rd QUARTER 2017

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ARTICLES, FAQs, AND VIDEOS
Our core content sections, organized by topic

PODCASTS
Brief, lively audio recordings on important topics in equity compensation, available at myStockOptions.com, iTunes, and Google Play Music

GLOBAL TAX GUIDE
Important recent updates in Belgium, France, and New Zealand

GLOSSARY
Recent updates and additions include T+2, T+3, transfer restriction, and more

ASK THE EXPERTS
Selected questions from Premium Members of myStockOptions.com

NONQUALIFIED DEFERRED COMPENSATION
The latest additions and updates at our sibling website myNQDC.com.


The myStockOptions.com Blog is a great way to keep up with new developments in equity compensation and with the frequently updated content of myStockOptions.com. You can also follow us on Twitter.

Tax Center

NEW! How might tax reform affect stock compensation?

NEW! How would the repeal of Obamacare affect stock compensation?

How does Obamacare affect my Medicare tax and stock compensation planning?

How have recent tax laws changed the withholding taxes on my equity compensation?

What are capital gains and capital losses? What are the capital gains tax rates?

Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?

Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?

How soon after an NQSO exercise must the withholding taxes be paid to the IRS? Is the timing different for a cashless exercise?

How soon after my restricted stock vests must the IRS receive my withholding taxes?

I have moved from one state to another. What happens with the taxes on restricted stock or RSUs if I live in different states during the period between grant and vesting?

I have moved from one state to another. What happens with the taxes on my stock options if I live in different states during the period between grant and exercise?

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ARTICLES, FAQs, AND VIDEOS

Basics

Why do companies grant stock options, restricted stock, and other equity awards? Do employees really value them?

What is a stock plan?

What are the important documents I need to understand a stock plan? What are some examples of plans?

Are there different types of time-based vesting schedules? Which are most common?

What types of equity compensation other than stock options are offered by employers?

Do equity awards really motivate employees?

How common are stock options, restricted stock, performance shares, and ESPPs outside the United States? Do surveys show trends?

Are stock options, restricted stock, and ESPPs subject to ERISA requirements and regulations?

How can I find out whether my employer offers stock options or restricted stock, or has an ESPP?

Are different types of stock options granted by employers?

How do I use public resources to research a company's stock compensation practices, the grants it is making, and the holdings of its executives?

When did stock option expensing become mandatory? How does this affect and change my stock grants?

When did ESPP expensing become mandatory, and how may my ESPP change?

When do I receive the sales proceeds, and how will I know the amount?

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Restricted Stock, RSUs, And Performance Shares

Which do companies grant more often: restricted stock or restricted stock units (RSUs)?

What is a typical vesting schedule? Do you have any data on vesting schedules and their design?

Are there different types of time-based vesting schedules? Which are most common?

Any data on vesting schedules for restricted stock?

What is a post-vest holding period?

What types of company goals are most commonly set for performance shares and units? What do surveys show about the performance metrics and periods that companies use?

With restricted stock units and performance shares, can I defer the delivery of the shares at vesting? How is this taxed?

Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?

Do I need to attach my Section 83(b) election to my tax return?

May I have my employer withhold more taxes upon the vesting of my restricted stock than the minimum required amount?

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

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Employee Stock Purchase Plans (ESPPs)

What are the different types of employee stock purchase plans? What are their features?

How am I taxed if I participate in a tax-qualified (Section 423) employee stock purchase plan?

How am I taxed if I participate in a nonqualified employee stock purchase plan?

Will the price always be discounted from the fair market value of the stock? What do surveys show about corporate practices?

What is an ESPP disqualifying disposition, what can cause it, and why does my company care?

How common is it for an ESPP to have a mandatory holding period for purchased stock?

What are the 10 most important financial-planning rules for employee stock purchase plans?

When did ESPP expensing become mandatory, and how may my ESPP change?

Do surveys show how employee stock purchase plans are changing with mandatory expensing and other developments?

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NQSOs

What is a "nonqualified stock option"?

When and how are nonqualified stock options taxed?

When I hold NQSO shares after exercise, what tax applies when I later sell the stock?

Are there different types of time-based vesting schedules? Which are most common?

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ISOs & AMT

Are there different types of time-based vesting schedules? Which are most common?

What is the latest news from Congress about legislation relating to the alternative minimum tax?

What is a disqualifying disposition with incentive stock options, what can cause it, and why does my company care?

My company allows me to exercise my ISOs early and receive stock subject to a company repurchase right during the vesting schedule. Does my early exercise before vesting affect the calculations for AMT or disqualifying dispositions?

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Stock Appreciation Rights (SARs)

What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?

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Financial Planning

Advisors, Have You Heard About MSO Pro?
Tools to track and model grants for multiple clients, and proactive communications to build relationships. Selected by CPA Wealth Provider Magazine as one of the best new financial-planning products. Click here for more information.

NEW! How might tax reform affect stock compensation?

What are the 10 most important financial-planning rules for employee stock purchase plans?

For NQSOs or SARs exercised on the last business day of 2017, or for restricted stock that vests on that day, is the income taxable in 2017 or 2018?

My income next year will trigger higher taxes, including the 3.8% Medicare surtax on capital gains. If I sell stock this year, I can avoid these taxes. What issues should I consider?

Next year I may be in a higher tax bracket. I am thinking about exercising my nonqualified stock options before then to accelerate income into this year. What issues do I need to think about?

Can my company set ownership guidelines for company stock? Any survey data about their use?

Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?

What is a post-vest holding period?

I plan to exercise options for stock that pays dividends. Are there any exercise strategies or at least mistakes to avoid?

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Job Events

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

What is the tax impact of having a clawback in my grant? What if my company claws back the gains?

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Life Events

NEW PODCAST INCLUDED! The Great Drawdown: How To Optimize Stock-Based Compensation For Retirement Planning

NEW PODCAST INCLUDED! Divorce: What Happens To My Stock Options? (Parts 1-3)

Funding Your Child's College Education With Stock Options And Other Stock Grants (Parts 1-3)

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?

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

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

How do stock grants affect Roth IRA contributions and conversions?

Are stock options, restricted stock, and ESPPs subject to ERISA requirements and regulations?

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

What are the federal income tax consequences if my estate or beneficiary sells stock that I received from a prior option exercise or from restricted stock vesting?

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

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SEC Law & Rule 10b5-1 Trading Plans

What is insider tipping?

With insider trading, do I need to be caught in the act to be investigated or prosecuted?

Do the rules of insider trading and tipping apply only in business contexts? Do they also apply to what I tell friends and family?

Aren't my stock-trading records confidential? How could the stock exchanges and the SEC get them and other information about me?

How do civil and criminal insider-trading cases differ?

Can the SEC, the Treasury, or my company take away stock option gains, restricted stock, and performance shares after accounting fraud has occurred?

If I must disgorge short-swing profits under Section 16(b), do I still have to pay tax on those profits? Do I get a tax deduction for the disgorgement?

How do I use public resources to research a company's stock compensation practices, the grants it is making, and the holdings of its executives?

I am a senior executive. When and how do I make my Form 4 filing for restricted stock, restricted stock units, and performance shares?

What is a Rule 10b5-1 trading plan?

What are best practices for Rule 10b5-1 trading plans?

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M&A

What will happen to my unvested stock grants if my company is acquired or if it merges with another company?

What will happen to my vested stock options if my employer is acquired by another company?

What could happen to my restricted stock in an acquisition of my company?

A private equity firm is buying my company. What will happen to my stock options and restricted stock?

How can I find out how much I will make from an acquisition of my company?

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Pre-IPO

NEW! Unexpected Risks Of Early-Exercise Stock Options

How do privately held companies create liquidity for employees' options and stock, other than going public or getting acquired?

Is the tax treatment different if I work for a pre-IPO company? For example, are taxes delayed at exercise until the stock is registered with the SEC?

Has there been a tax-law change for stock options and restricted stock units (RSUs) in privately held companies?

My company allows me to exercise my ISOs early and receive stock subject to a company repurchase right during the vesting schedule. Does my early exercise before vesting affect the calculations for AMT or disqualifying dispositions?

Why is dilution important to me? How do stock grants affect it?

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PODCASTS

NEW:

The Great Drawdown: How To Optimize Stock-Based Compensation For Retirement Planning

Divorce: What Happens To My Stock Compensation?

Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems

Stock Option Terms: What You Can Expect

Restricted Stock Units After An Acquisition: Know What Could Happen

When To Wait, Hold, Or Sell: A Wealth Manager Reveals His Wisdom On Stock Option Exercise Strategy

Our podcasts are available on our website, at iTunes, and at Google Play Music.

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GLOSSARY

NEW:


DTA
RRTA
T+2
T+3
Transfer restriction
VCD

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Get it on Google Play


GLOBAL TAX GUIDE This is premium content

UPDATES:

Belgium
France
New Zealand

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ASK THE EXPERTS

NEW:

I have restricted stock units, but my company seems to be struggling. If it declares bankruptcy, do I have any special rights?

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NONQUALIFIED DEFERRED COMPENSATION

A sample of the latest major additions and updates at our separate website myNQDC.com, a comprehensive publication about nonqualified deferred compensation:

NEW! The Proposed GOP/Trump Tax Cuts: Good Or Bad For Pretax Compensation Deferral?

How do I fit nonqualified deferred compensation into my financial plan?

At what time of year do I make my election to defer income? Is the timing different for performance-based compensation?

How did the IRS modify the Section 409A regulations in 2016?

Are NQDC plans affected by the Supreme Court's rulings on marriage equality?

I am a US executive moving overseas to work. When I live outside the United States, does the tax treatment change for deferrals and distributions under my nonqualified deferred compensation plan?

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CONTACT AND LICENSING INFORMATION

TO CONTACT THE EDITORS: editors@mystockoptions.com

TO LICENSE OUR CONTENT: sales@mystockoptions.com

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