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NASPP Essentials

Ten Facts About the ESPP $25,000 Limitation
May 05,2020

The article offers an in-depth explanation of how to apply the Section 423 $25,000 limitation to your ESPP.

Understanding the $25,000 Limit in Seven Slides
May 05,2020

This slide deck uses several examples to explain key concepts important to understanding the $25,000 limitation under section 423.

Designing and Implementing an Employee Stock Purchase Plan
Dec 31,2019

This article summarizes the principal features of employee stock purchase plans (ESPPs), especially those that are designed to qualify under Section 423 of the Internal Revenue Code (the “Code”), and highlights some of the practical considerations involved in putting an ESPP into place.

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Latest Developments

New Rules for 401(k) Plans Affect ESPPs
Jan 16,2019

The alert summarizes an IRS Notice of Proposed Rulemaking that will eliminate the requirement to suspend contributions in an ESPP after an employee receives a hardship withdrawal from the company's 401(k) plan.

Tax Changes for 2019
Nov 14,2018

Changes to tax withholding rates and compensation thresholds for various tax-related purposes for 2019.

Reminder:  ISO and ESPP Information Returns and Statements
Jan 18,2018

Participant statements required under Section 6039 are due by January 31. Here's what you need to know.

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Cadillac ESPP Considerations: What You Need to Know Before Adopting
Oct 31,2019

Are you considering an ESPP with a generous offering period, lookback, and discount? This article by Infinite Equity discusses key things to consider.

ESPP Valuation – 4 Missing Pieces
Jun 28,2019

Are you recognizing more expense than you need to for your ESPP? This article by Infinite Equity looks at additional factors to consider when valuing ESPPs.

2018 Deadlines Approach to Furnish ISO and ESPP Information Statements/Returns
Jan 19,2018

Under Section 6039, participant statements for ISOs and ESPPs must be distributed by January 31.

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How Prevalent are ESPPs?
Jul 23,2020
Jennifer Namazi

Analysis of Russell 3000 and S&P 500 company data suggests that the prevalence of ESPPs varies based on a number of demographics such as region, industry, market cap and headcount.

Market Volatility and Your ESPP
Mar 24,2020
Barbara Baksa

When your stock price is in decline, employees contributions purchase a lot more shares in your ESPP. This can have significant implications in terms of your plan reserve, as well as purchase limitations (including the $25K limit).

The Case for ESPPs and Upping Participation
Feb 13,2020
Jennifer Namazi

The case for ESPPs, innovation to increase ESPP participation, and a plug for podcasts.

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Sample Documents

Sample Email Explaining the $25,000 Limitation
May 05,2020

This is a sample email that can be used to explain the $25,000 limit to an employee.

Sample Explanation of the $25,000 Limitation
May 05,2020

A sample memo explaining the ESPP $25,000 limitation to employees.

Sample $25,000 Limit Worksheet for Employees
May 05,2020

Sample worksheet to explain the $25,000 limit to employees.

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Trends & Analysis from the 2014 Domestic Stock Plan Administration Survey
Oct 16,2014

Find out the latest practices and trends in stock compensation!

Trends and Analysis from the 2011 Stock Plan Administration Survey
Sep 27,2011

Find out the latest practices and trends in stock compensation!


Surveys & Studies

How Common are Employee Stock Purchase Plans?
Apr 17,2020

This study by Aon Rewards Solutions, with contributions by the NASPP and Fidelity Stock Plan Services, definitively answers the question of how common ESPPs are.

Survey Says: 10 Dos & Don'ts of Stock Plan Administration
Oct 17,2017

Highlights of the 2017 Domestic Stock Plan Administration Survey, cosponsored by the NASPP and Deloitte Consulting LLP.

Ayco's Updated Survey of Employee Stock Purchase Plans
Jan 13,2017

Conducted by The Ayco Company, this informal survey of 375 of Ayco’s publicly traded clients reveals that 55% now maintain some type of stock purchase plan. This article reports ESPP trends and practices, as indicated by the survey group of 200 companies. The survey reflects relative stability in the types of plans compared to similar surveys Ayco conducted two and four years ago.

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Regulations & Statutes

Notice of Proposed Rulemaking: Hardship Distributions of Elective Contributions, Etc.
Nov 14,2018

IRS notice of proposed rules which would, among other actions, eliminate the requirement to suspend contributions to an ESPP after a hardship withdrawal from a 401(k) plan.

Section 423: Employee Stock Purchase Plans
Dec 22,2017

Section 423 of the Internal Revenue Code, which defines qualified employee stock purchase plans.

Form 3922
Sep 01,2016

IRS Form 3922, used to report first legal transfer of shares acquired under a Section 423 employee stock purchase plan (ESPP).

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Recent Q&A Discussions

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The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.


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