Employee share purchase plans,exit options, IRS

Question

I am investigating the options for what to do with an Employee Share Purchase plan upon retirement that do not result in having to pay a big tax to IRS. I understand that I will have a taxable event if I take constructive receipt of the shares but I believe I can also transfer them to a 401k or some other type of arms length plan.....  Looking for some detailed information on choices.

JTP - Apologise to Monica · Answer

ESPP are typically bought at a discount, the discount is taxed as ordinary income. The remaining gains are taxed as long term cap gains when held for over 2 years. Depending on your income during retirement, that can be 0%, up to 15% maximum. That’s not too bad.

Answered by JTP - Apologise to Monica on September 17, 2020

Employee share purchase plans,exit options, IRS

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