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Quiz 6 - The Strategic Advantage - The 83(b) Election & Early Exercise (Email 6)

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Question 1 of 4

Simple Homework: Find your grant agreement. Does your company allow for early exercise?

 

If so, make a note of the grant date and mark your calendar for the 30-day deadline.

A

Yes

B

No

C

I can't find it

Question 2 of 4

The 83(b) election is a tax choice that allows you to pay taxes on your unvested shares at the time of...

A

retirement.

B

grant or early exercise.

C

sale or IPO.

D

vesting.

Question 3 of 4

What is the primary tax benefit of a well-timed 83(b) election?

A

It lets you convert future ordinary income into potentially lower-rate capital gains.

B

It gives you a tax credit for the entire value of your options.

C

It guarantees that you will never have to pay capital gains tax.

D

It allows you to avoid paying any taxes on your options.

Question 4 of 4

What is the strict deadline for filing an 83(b) election after a grant or early exercise?

A

90 days.

B

Anytime before you leave the company.

C

1 year.

D

30 days.

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