There’s no easy answer to this question. Under some stock option programs, certain options are taxable to the participant at the time they are granted. Other options are taxable only when and if they are exercised. See your personal financial advisor for information on how your stock option plan affects your tax picture.

The exercise period is the window of time provided in your stock options agreement. During this window, you may purchase the shares of company stock for which you were granted options. However, you are not required to exercise your options. The exercise period may vary with each grant of stock options.

The strike price is specified in your stock options agreement. The strike price is the price at which you can exercise your options (purchase the shares for which you were granted options) during the window of time provided in your agreement.

Vesting refers to the right to exercise your options at a set price and during a specific window of time, even if you leave the company. You become “vested” in the stock options after you have worked for a period of time since the options were granted to you. If you are granted options more than once, the vesting schedule will apply separately to the options in each grant. Becoming vested in options does not require you to exercise them to purchase stock.

No. As with any stock, the value of company stock can go up and down. It may or may not be to your advantage to exercise your options at any given time, especially if the stock’s market price is below its strike price. There are no guarantees on the value of your stock once you exercise your options.

A stock option plan grants stock options to eligible participants. Stock options are rights to purchase shares of company stock at a set price during a specific window of time. Generally, you would “exercise” your option at a time when the stock’s market price exceeds your “strike price” (the price set at the time the option is granted). In effect, you purchase stock at a discounted value. You can turn around and sell it for a profit or hold onto it assuming you expect it to appreciate in the future.

You generally are not taxed when stock shares are purchased for you. You pay tax when you later sell the shares. Depending on how long you hold the shares before you sell them, you may eligible for the lower, capital gains tax rates. See your personal financial advisor for information on how your stock purchase plan affects your tax picture.

You must pay income taxes on the part of your stock from any company contributions. You won't owe taxes on the part of your stock that is based on contributions you made to the plan since you already paid taxes on this money before you put it into the plan. However, you will owe tax on any growth in the value of your stock.

Administrative fees related to the cost of operating your plan may be charged to plan assets. For more information on these fees, contact the plan administrator.

You may have access to the stock you have purchased while you are still working for the company. Check your plan rules for details.

Vesting refers to earning a permanent right to your benefits. You are always 100% vested in the part of your benefit derived from your own employee contributions. A vesting schedule applies to the part of your benefit derived from company contributions. With a vesting schedule, you earn vesting in your benefit as you accumulate eligible vesting service for the company.

No. As with any stock, the value of company stock can go up and down. There are no guarantees on the value of your stock.

The company deducts the amount needed from your paycheck and contributes it to the plan.

Your contributions stop when you elect to discontinue them. Contributions also stop if you reach plan limits, or if IRS rules limit your purchase. Under IRS rules, your stock purchases must stop if you reach the point where your account holds 5% of the entire voting power or share value of the company’s stock.

Yes. Your plan allows periodic changes in the amount you contribute to purchase stock. There are limits on the amount you can contribute.

Employer contributions are amounts the company contributes to purchase company stock for your account.

Employee contributions are amounts you contribute to purchase company stock.

A stock purchase plan allows you to share in the success of the company by purchasing company stock at a special price.

You are not taxed when the company contributes stock to the plan for you (up to the applicable tax law limits). And you postpone taxes on the value of the shares and on any dividends paid on the shares until you take them out of the plan. If you have questions, see your personal financial advisor for information on how the ESOP affects your tax picture.

Administrative fees related to the cost of operating your plan may be charged to plan assets. For more information on these fees, contact the plan administrator.

You may be able to take a withdrawal from your account while you are still working. Check your plan rules for details.

Vesting refers to earning a permanent right to your benefits. You are always 100% vested in the part of your benefit derived from your own employee contributions. A vesting schedule applies to the part of your benefit derived from company contributions. With a vesting schedule, you earn vesting in your benefit as you accumulate eligible vesting service for the company.

The assets in the plan are invested in company stock. However, once you have attained age 55 or older and you have completed 10 or more years of plan participation, you have an opportunity to reduce your risk by choosing different investments. You may diversify your account over a five-year period. In each of the first four years of this period, you may move up to 25% of the value of your company stock to other investment options (assuming your employee stock ownership plan has investment options other than company stock). In the last of the five years, you may move up to 50% of your company stock to other investment options (or to different plan that offers other options).

No. As with any stock, the value of company stock can go up and down and there are no guarantees on the value of your account.

Employer contributions are amounts the company contributes to the plan.

The company deducts the amount needed from your paycheck and contributes it to the plan.

Your contributions stop when you elect to discontinue them. Contributions also stop if you reach plan limits.

Yes. Your plan allows periodic changes in the amount you contribute to purchase stock. There are limits on the amount you can contribute.

Employee contributions are amounts you contribute to the plan.

An employee stock ownership plan gives you an opportunity to share in the earnings you help create. Because the plan invests mainly in company stock, as a participant you become a shareholder in the company.