What are the general guidelines for the 83(b) election?

February 14, 2000

Date:   Mon, 7 Feb 2000
From:   Tom


First, thanks for the very informative page filled with information valuable to us here in the Valley.

I have a question regarding ISO’s and 83(b) election. I am vested in several thousand shares of my company’s stock and I’m currently exploring whether/when to exercise. A consultant here at the company said that 83(b) election was likely not available to us. I was wondering if you could give general guidelines concerning 83(b) election.


Date:   9 Feb 2000

Hello Tom,

Since your shares are vested, the Section 83(b) election probably isn’t required. You only need it when your company allows an early exercise of your options (before vesting) or when SEC Rule 16(b) applies (you’re a corporate insider.)

I hope this helps.

Good luck!

Mike Gray

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

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