Deferred Compensation & Equity Compensation Planning
Expert guidance on stock options, RSUs, ESPP, deferred compensation, and executive benefits tax planning.
Equity compensation is one of the most powerful wealth-building tools available to executives, but without proper planning, it can also be one of the most heavily taxed. AE Tax Advisors helps you time exercises, elections, and sales to minimize your overall tax burden.
What We Cover
- ISO vs. NSO exercise timing and AMT analysis
- RSU vesting and sale coordination with other income
- ESPP qualification and holding period optimization
- Section 409A deferred compensation election planning
- NQDC plan distribution timing and strategy
- Rule 10b5-1 trading plan tax coordination
- Concentrated stock position diversification
- Capital gains harvesting and loss offset strategies
Our Process
Equity Inventory
We catalog all your equity grants, vesting schedules, exercise prices, and current values to build a complete picture.
Tax Impact Modeling
We model the tax impact of different exercise/sale scenarios across current and future tax years.
Timing Strategy
We develop a multi-year exercise and sale calendar coordinated with your other income events.
Execution Support
We coordinate with your broker, HR department, and financial advisor to execute transactions at optimal times.
Frequently Asked Questions
When should I exercise my stock options?
The answer depends on your total income, AMT exposure, stock price trajectory, and liquidity needs. We model multiple scenarios to find the optimal timing.
How are RSUs taxed differently from stock options?
RSUs are taxed as ordinary income at vesting, while ISOs can qualify for long-term capital gains treatment if holding period requirements are met. NSOs are taxed at exercise.
What is a Section 83(b) election?
An 83(b) election lets you pay tax on restricted stock at grant rather than vesting, potentially converting future appreciation from ordinary income to capital gains.
Ready to Get Started?
Schedule a complimentary consultation and discover how our deferred compensation & equity compensation planning services can work for your situation.
Request Your Free Tax AssessmentFrequently Asked Questions
What's the tax difference between options and RSUs?
ISOs have preferential treatment if held properly. NSOs are taxed at exercise. RSUs are taxed at vesting. Each requires different planning.
How are stock bonuses taxed?
Usually as W-2 income at grant or vesting date. Restricted stock units (RSUs) are taxed at fair market value on vesting. Plan accordingly.
What about Section 83(b) elections?
Filing a timely Section 83(b) election starts the holding period early for ISO benefits. Missing the 30-day deadline costs tax benefits.
How do I plan for the Alternative Minimum Tax (AMT)?
Disqualifying dispositions of ISOs trigger AMT. We model scenarios and recommend the optimal exercise and sale strategy.