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Year-end is a key time for financial and tax planning among the millions of employees in the United States who have stock compensation (such as stock options and restricted stock units), participate in an employee stock purchase plan (ESPP), and/or have holdings of company shares. In 2022, year-end financial and tax planning can be tricky because of ongoing volatile stock prices and economic uncertainty.
To help, myStockOptions.com has updated its education and guidance on the major issues, decisions, and innovative financial-planning strategies for the end of 2022 and the start of 2023. This content is available in the website’s section Financial Planning: Year-End.
Why Year-End Planning Is Important For Stock Comp
At year-end, multi-year planning is especially valuable with stock compensation. “You can control the timing of stock sales and option exercises, and you know when restricted stock/RSUs will vest,” according to Bruce Brumberg, the Editor-in-Chief of myStockOptions.com.
Timely year-end guidance is particularly crucial for people who are considering option exercises or stock sales at the end of 2022. “Employees with equity grants and company shares should be aware of the 2022 and 2023 thresholds for higher tax rates on compensation income and capital gains, the phaseouts for various tax credits, and the Medicare surtax on investment income,” Mr. Brumberg notes. “They may want to consider keeping their income below those known thresholds, when possible. If they are convinced their tax rates will be higher in 2023 and beyond, they may want to defer deductions into the future and accelerate income into 2022.”
Employees who seek tax-loss harvesting by selling company stock that has depreciated since acquisition also need to be aware of the rules on wash sales, warns Mr. Brumberg. “Under IRS rules, the purchase of new shares within 30 days of the sale can result in a forced deferral of that capital loss until a future year,” he explains. “A purchase can include an RSU vesting, stock option exercise, or ESPP purchase.”
Year-End Webinar Covers Key Financial And Tax Strategies
myStockOptions.com is also holding a special webinar on year-end financial and tax planning:
Year-End 2022 Financial & Tax Planning For Equity Comp
Dec. 1 (2pm–3:40pm ET, 11am–12:40pm PT)
2.0 CE credits for CFP, CPE, EA, CPWA/CIMA, and CEP
In 100 minutes, the webinar features insights from a panel of three leading financial and tax advisors, including real-world case studies, to provide practical expertise on equity comp in both public and private companies. Registration, panelist details, and the agenda of topics are available at the myStockOptions Webinar Channel, where past myStockOptions webinars are also available on demand.
Disclaimer: The news site hosting this press release is not associated with myStockOptions.com. It is merely publishing a press release announcement submitted by a company, without any stated or implied endorsement of the information, product or service. Please refer to a tax attorney or CPA for tax advice.
About myStockOptions.com
With award-winning content and tools, myStockOptions.com is an independent and unbiased source of expertise on stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and employee stock purchase plans. We specialize in making complex stock compensation topics clearly understandable and relatable, in plain English and with an engaging style. Our audience includes:
– stock plan participants
– financial planners, wealth advisors, and CPAs
– professionals in stock plan administration, human resources, compensation, and finance
– attorneys, corporate counsel, and other members of legal staff
In addition to individual memberships, we also offer corporate services.
