Employee compensation provisions

Section 83(i) Election

Stock plan participants of privately held companies (excluding the CEO, CFO, one-percent owners, and top four highest compensated individuals) can elect to defer tax on certain equity grants

The TCJA established a new election for certain stock plan participants to defer tax on certain equity grants to the earlier of:

Five years after equity became “substantially vested”

Date the stock becomes transferable

Date the employee becomes excluded

Date the stock becomes publicly traded

Date the employee revokes 83(i) election

 
The election is available only if the employer is a non–publicly traded company. In addition, the CEO, CFO, one-percent owners, and top four highest compensated individuals are also excluded from making the election.