The 83(b) Election: What Pre-IPO Employees Need to Know Before the Window Closes
If you have equity at a pre-IPO company, there’s a 30-day window that can significantly change how much of your gains you actually keep. Most people miss it, not because they weren’t paying attention, but because nobody told them it existed. In this video, I walk through the 83(b) election: what it is, which equity types qualify, and the downside scenario that rarely gets explained clearly.
Topics covered:
— What the 83(b) election actually does
— Restricted stock awards, early-exercised ISOs, and founder shares vs. standard RSUs
— The AMT exposure ISO holders need to model before exercising
— Why the election isn’t always the right move
— The 30-day deadline and why it’s absolute
This content is for educational purposes only and does not constitute financial, tax, or legal advice.
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Welcome to our videos where we share tips and advice on all topics that help women meet their financial goals.
About the Author
Randa Hoffman is the owner and financial planner at Radiant Wealth Planning, a fee-only financial planning and investment management firm exclusively for women. She helps ease the uncertainty around retirement, tax planning, and transitioning wealth so that women can live a life they’ve always dreamt of. She holds an MBA and EA and lives in Newport Beach, CA.
