|
01-26-2024, 09:57 PM | #2 |
Arrowhead Trail of Tears
Join Date: Oct 2012
Location: KansasCity
|
not sure all the details but typically ESP plans allow you to purchase the company stock at a discount i.e. 10% depending on the lookback period etc etc
once you purchase the stock I believe you are free to do with it what you want pending any tax liabilities for early sale shit like that You might have blackout periods where you can't sell depending on your company and how much inside information you might have regarding financials etc |
Posts: 29,191
|
01-26-2024, 10:04 PM | #3 | |
In Search of a Life
Join Date: Jan 2016
|
Quote:
Last edited by IowaHawkeyeChief; 01-26-2024 at 10:11 PM.. |
|
Posts: 26,969
|
2 0 |
01-26-2024, 10:10 PM | #4 |
Supporter
Join Date: Apr 2007
Location: Scott City KS
|
https://www.fidelity.com/products/st...0of%20purchase.
423 allows the employee to buy the stock at a discount but the discount isn’t taxable. The tax shelter is where the qualified plan comes. |
Posts: 56,956
|
01-27-2024, 12:45 AM | #5 |
Veteran
Join Date: Sep 2000
|
So the Qualified 423 is like a 401k? Sheltered from taxes?
She works for an off shoot of American Express travel department. Gets 15% discount on stock purchase. So from what I understand is: qualified is tax help (shelter), non is not like a Roth but taxable at sale similar to a normal account...taxed a time of sale whether short/long term tax event? |
Posts: 3,611
|
01-27-2024, 01:04 AM | #6 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
|
Quote:
That’s my understanding. The only one I ever dealt with was 15 years ago. |
|
Posts: 56,956
|
1 0 |
01-27-2024, 05:40 AM | #7 | |
Veteran
Join Date: Sep 2000
Location: Davis, CA
|
Quote:
|
|
Posts: 4,232
|
01-27-2024, 05:53 AM | #8 |
Veteran
Join Date: Nov 2020
Location: Texas
|
There is a small inherent risk in purchasing the stock of the company you work for. Your job is the biggest part of your financial well-being and purchasing stock in that same company concentrates your financial well-being that much more into that company. It increases your risk somewhat by concentrating your finances in one entity. If you're invested in the market, it's unwise to have all of your investments in a single company and buying stock in the company you work for is a similar problem. This is not to say that you shouldn't do it, but that you need to do your due diligence with that purchase just as you would any other and a thorough analysis of how it affects your financial position is part of that analysis.
|
Posts: 1,803
|
01-27-2024, 09:06 AM | #9 | |
Supporter
Join Date: May 2005
Location: Who knows?
|
Quote:
I mean, that's a 10-15% profit off the top. |
|
Posts: 83,634
|
01-27-2024, 09:19 AM | #10 | ||
Veteran
Join Date: Sep 2000
|
Quote:
Quote:
|
||
Posts: 3,611
|
01-27-2024, 09:21 AM | #11 | |
Supporter
Join Date: May 2005
Location: Who knows?
|
Quote:
|
|
Posts: 83,634
|
01-27-2024, 11:39 AM | #12 |
Veteran
Join Date: Jan 2005
Location: SLC, UT
|
This is from Fidelity. I’m not quite sure what the grant date would be.
Q. When may I sell my stock in an ESPP? A. Employees can generally sell shares purchased through the employee stock purchase plan at any time. However, if the shares were purchased under a Section 423 plan, the tax consequences will be different depending on how long you have held the shares. To get a favorable tax treatment, you have to hold the shares purchased under a Section 423 plan at least one year after the purchase date, and two years after the grant date. |
Posts: 1,690
|
01-27-2024, 11:55 AM | #13 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
|
Quote:
As long as she's not looking to sell them, I'd go with the qualified plan. Getting the discount is an automatic return - much like a 401K match. |
|
Posts: 56,956
|
|
|