Stock Option Planning

How can you derive the greatest value from your stock-based compensation to boost your net worth and improve your financial future? Understanding your company program and your options is key.

Among other considerations, you’ll want to evaluate when you should exercise stock options, the tax impact of awards, how to determine and track the cost basis of stock, and whether and when to sell company shares. You’ll also want to understand big-picture concerns, such as how your stock-based compensation and other employer benefits will impact your financial future, including your retirement and estate planning.

We help companies, founders, corporate executives, and others with stock-based compensation learn more about their employee stock option choices and properly plan around them, leveraging opportunities to reduce the associated tax consequences. We can help you with:

  • Planning strategies for:
    • Stock options (nonqualified and incentive stock options)
    • Restricted stock grants
    • Employee stock purchase plans
    • Internal tender offers
  • Early exercise and 83(b) elections
  • Federal and state estimated tax payment rules
  • Capital gains versus ordinary income
  • Alternative minimum tax (AMT) issues, including:
    • AMT crossover
    • Timing of state tax payments
    • Good AMT versus bad AMT
    • Making the right use of your AMT credits
    • Ordinary income taxed at the 28 percent AMT rate
  • Individual income tax planning
  • Estate tax, charitable giving, and philanthropy
  • Net investment income tax planning
  • Personal financial planning and retirement planning

For employee groups, we also offer education tailored to your company’s specific stock plan and one-on-one planning to help executives navigate the tax complexities unique to their personal situation.

Even if you’re already familiar with stock-based compensation and its tax implications, contact a trusted advisor for help identifying new opportunities, weighing possible tax scenarios, and fitting your stock-based compensation planning into your larger financial goals.

Investment advisory services provided by Moss Adams Wealth Advisors LLC. For more information about our services please review our Disclosure Brochure/Privacy Policy or Client Relationship Summary.

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