Do terminated employees have three months to exercise their options?
September 10, 2001
Subject: Section 422
Date: Tue, 28 Aug 2001
Does Section 422 of the IRC require that terminated employees have 3 months to exercise their vested options? Can a company Option Plan require a terminated employee to exercise their options in less than 90 days and still have the option plan comply with section 422?
Date: Fri, 7 Sep 2001
Section 422 does not state that the option has to continue in effect three months after termination to qualify as an ISO. That is the maximum allowed.