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Re:Thanks for the Bonus, I Quit by mattm on Sunday April 18, 2021 @10:37AM (#26852849)
How does this work when they haven't vested yet?
Re:Thanks for the Bonus, I Quit by richardxia on Sunday April 18, 2021 @12:12PM (#26853684)
If your company allows for it, you can early exercise and file a 83(b) election so that even as your options vest over time, you only pay taxes for the spread between your strike price and the fair market value at the date of the early exercise, rather than the date of vesting. The taxes can be 0 if you early exercise when the fair market value _is_ the same as your strike price.

https://www.investopedia.com/terms/e/earlyexercise.asp

https://www.investopedia.com/terms/1/83b-election.asp

Re:Thanks for the Bonus, I Quit by alain94040 on Sunday April 18, 2021 @12:08PM (#26853643)
It's called election 83(b). For it to work, the company grants you restricted stock instead of options. The restriction is that the company can buy back the stock on a vesting schedule, so it's effectively equivalent to stock-options. The difference is that you can buy all of them on day 1 at fair market value and pay no tax.

It's usually done for early employees who join before multiple rounds of funding occur.