Daniel Zajac, CFP®

7 Things to Know About Your Employee Stock Purchase Plan

May 14, 2019 By Daniel Zajac, CFP®, AIF®, CLU® Leave a Comment

An employee stock purchase plan is a compensation tool that may allow you to purchase shares of company stock through convenient payroll deductions. Employee stock purchase plans, or ESPPs, can give you the opportunity to buy company stock at a discount or at a favorable price. Through the plan, you could also receive potentially preferential tax treatment on the profits should you meet specific holding periods requirements for the shares you buy. If your employer offers an ESPP but you’re not sure if you should participate, here’s what …

How to Use the AMT Credit Effectively in Retirement

May 8, 2019 By Daniel Zajac, CFP®, AIF®, CLU® 1 Comment

If you have incentive stock options, you’ve likely heard of -- and perhaps already paid -- the alternative minimum tax. This is the tax due in the years you exercise and hold incentive stock options, or ISOs. You might also be entitled to an AMT tax credit if that’s the case. The AMT credit gives you the ability to get back some or all of the AMT you paid when you sell your incentive stock option shares in a final sale. Unfortunately, the AMT you pay and the AMT credit you might receive don’t always line up in a dollar-for-dollar …

5 Reasons Why You Might Want a Disqualifying Disposition for Your Incentive Stock Options

May 2, 2019 By Daniel Zajac, CFP®, AIF®, CLU® Leave a Comment

Want to pay less in taxes from the sale of your incentive stock options? While you can’t completely avoid taxes on a profit when you exercise and sell shares from ISOs, you can potentially earn the right to pay at long-term capital gains tax rates -- which are lower than ordinary income. This potential for paying a lower tax rate is one feature that tends to make incentive stock options more favorable than their non-qualified stock option counterpart. But how do you secure that lower rate? You need a qualifying disposition, which you can …

My real passion is helping people who are serious about making great decisions with their money pursue financial success.

Like you, my clients are busy and successful. They often work with me because they are serious about creating a plan to exercise and sell some or all of their stock options (in the short or long term).

A plan that addresses the alternative minimum tax, holding period requirements, cash flow needs, investment risk, and personal financial planning goals.

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