Terminating and liquidating a non qualified plan Humiliation java chat
Within the offering period there are typically several purchase periods that end in purchase dates.
For example, an offering period could start with an offering date of January 1st and then have nine purchase periods that last for three months each.
Like their non-qualified cousins in the retirement plan arena, such as deferred compensation or executive bonus plans, they can allow participation on a discriminatory basis.
However, they also do not receive favorable tax treatment under any circumstances.
One of the most powerful benefits that any publicly traded company can offer its employees is the ability to purchase stock in itself.
There are several ways this can be done, but perhaps the most straightforward method of employee stock ownership can be found in an employee stock purchase program (ESPP).
These plans are similar to other types of stock option plans in that they promote employee ownership of the company, but do not have many of the restrictions that come with more formal stock option arrangements.
One is a qualifying disposition, which is accorded favorable tax treatment under the tax code.
The other is a disqualifying disposition, which is not.
Plus, they are designed to be somewhat more liquid in nature. Qualified plans are more common and must adhere to the rules laid out in Section 423 of the Internal Revenue Code.
However, qualified ESPPs should not be confused with qualified retirement plans that grow tax-deferred and are subject to ERISA regulations.