2 ms·
83(b) elections are for restricted stock grants, not applicable to options.
by cjbprime 11y ago
83(b) elections are for restricted stock grants, not applicable to options.
- not_that_noob 11y agoSome option agreements allow the early exercise of options, turning them into restricted stock. Because the value is usually low at seed stage, a good strategy is to exercise and then file 83(b) on the restricted stock. In this case, assuming you have this provision in your stock agreement, it avoids the mess of this exact scenario.
- toast0 11y ago83(b) is applicable to options, if the options grant allows for early exercise, and you do exercise early (before the options have vested).
- stedalus 11y agoOr if the option grant has early exercise.