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Date:   Wed, 03 Jan 2007
From:   Adam

Michael,

Can a public company allow me to hold my options after I leave the company and exercise them at a later date?

Thanks for your help.

Answer

Date:   Wed, 31 Jan 2007

Hello Adam,

Yes. However, most companies only allow their employees to continue to have the right to exercise employee stock options for a limited time. Also, an option can only be treated as an ISO or ESPP if the individual was an employee from the time the option was granted until the date three months before the date of exercise. If the company allows you to extend ISOs or ESPPs, they will be converted to non-qualified stock options.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.