Non-Qualified Stock Options: Basic Features and Taxation

Non-Qualified Stock Options: Basic Features and Taxation

Two main types of stock options are offered to employees of technology companies: non-qualified stock options and incentive stock options. This article covers the basic features and tax treatment of non-qualified stock options.

Non-qualified stock options are often called “non-quals,” NSOs, or NQSOs. The term “non-qualified” is tax law jargon that means that this type of option does not qualify to receive special income tax treatment. In contrast, incentive stock options, or ISOs, are qualified to receive favorable income tax treatment.

Why You Should Take Advantage of Your Company’s Employee Stock Purchase Plan

Why You Should Take Advantage of Your Company’s Employee Stock Purchase Plan

Saving and investing in your company’s Employee Stock Purchase Plan (ESPP) is on our list of permanent recommendations.  An ESPP allows you to buy your employer’s stock at a discount of up to 15% or more of its current market value. You can then sell your ESPP shares when you receive them to capture the built-in investment gain.

Publicly-traded companies offer ESPPs to give their employees an opportunity to earn more. ESPPs help companies by creating incentives for employees to contribute to the company’s success, through and aligning their interests with other shareholders.

401(k) Plan Basics—Part II: Contributions, Investment Options, and Recommendations

401(k) Plan Basics—Part II: Contributions, Investment Options, and Recommendations

Last week we took a look at tax advantages and rules to remember for 401(k) plans. This week we will discuss the nuts and bolts of using a 401(k), including contributions, investment options, and beneficiaries.

Using your 401(k) plan requires that you select a contribution amount, investments, and often, a rebalancing frequency. You should also select beneficiaries for your account in the event of your death.

Donor-Advised Funds: An Important Tool for Your Charitable Planning

Donor-Advised Funds: An Important Tool for Your Charitable Planning

Donor-advised funds are the fastest-growing charitable giving vehicle in the United States—and for good reason.[1] Donor-advised funds are a simple, flexible and tax-efficient way of supporting the charities you care about. With their ability to accept complex assets such as private company stock, real estate and venture capital fund partnership interests, donor-advised funds are an important charitable planning tool for Silicon Valley

Accredited Investors and Private Securities: What You Need to Know to Qualify

Accredited Investors and Private Securities: What You Need to Know to Qualify

Investing in many categories of alternative investments, such as private equity, venture capital and hedge funds, requires buying private securities that are not registered with the U.S. Securities and Exchange Commission (SEC) and are not traded in public markets. Federal securities law and regulations place restrictions on who can purchase these private securities. Companies and private funds can offer to sell unregistered securities only to investors who qualify as accredited investors. If you are interested in pursuing direct investment opportunities in private companies, investing in portfolios of private companies through a private equity fund or venture capital fund, or investing in hedge funds or managed futures funds, you need to become familiar with the qualifying requirements for accredited investors

Evaluating Startup Job Opportunities: Think Like An Investor

Evaluating Startup Job Opportunities: Think Like An Investor

You’ve been approached by a hot new startup company that urgently needs your talents and asks you to come in to interview. The product and technology sound great, and you can’t stop thinking about how much money you’ll make when the company goes public or gets acquired. There are some risks involved, though. This may be a great opportunity—or it may not be. And that leaves you wondering: Just how should you evaluate a job opportunity at a startup company?