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83(b) elections

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Gloria Ndegwa posted 06-18-2024 09:26

Hi.

I am new to Carta and options scheme too

Do we have to inform employees to make 83b elections when exercising options and granting options?

At which point are 83(b) elections required? Does it mean they don't have to file 83(b) elections when options have vested and ready to be exercised?

Mate I. Zgombic posted 06-18-2024 09:35 Best Answer

Hi Gloria -

Optionees have the option to file an 83(b) only if their options are early-exercisable. It's nice to remind them that they have the option to file if they are going to exercise their options early (i.e. before they've vested), but not required.

Mate

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