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Anyone actually done this with normal stock options (NSO if it matters) and have advice? My understanding is that it might be achievable with Pensco as the IRA
by joshe 5y ago
Anyone actually done this with normal stock options (NSO if it matters) and have advice? My understanding is that it might be achievable with Pensco as the IRA custodian but I'd be interested in hearing how it worked in practice
- vmception 5y agoI’ve done it, you have to have executive authority over the issuing company to do it, as other directors and their legal counsel are too uninspired to do anything outside of the norm. Your IRA is a legal entity and you can grant an option to it. It needs the cash to exercise it. Options can have shares at any price in them, such as discounted to nothing but it comes down to which consequences you care about. Making a potentially screwy 409a valuation isn't a big deal, but also avoided if done before other investors come in. Either way it can be a tolerable level of consequence.