Quote:
Originally Posted by Buehler445
No. She uses after tax dollars to purchase the stocks. But the stocks are at a discount to market price. That discount would normally be taxed as compensation. Under a qualified plan it is not. That is the tax shelter.
That’s my understanding. The only one I ever dealt with was 15 years ago.
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Yes, that seems consistent with how Fidelity describes employee stock purchase plans in general and the qualified 423 employee stock purchase plan in particular in the first couple of questions and answers here,
https://www.fidelity.com/products/st...0of%20purchase.