Employee Stock Purchase Plan
Your company-run Employee Stock Purchase Plan (ESPP) allows you to buy shares of your employer’s stock at a discounted price, typically through after-tax payroll deductions.
Types of Shares
Depending on when you sell the shares, the disposition will be classified as either qualified or nonqualified. And each will have a different tax implication.
Qualified Shares
A qualified plan allows employees under U.S. tax law to purchase stock at a discount from fair market value without any taxes owed on the discount at the time of purchase. In some cases, a holding period will be required for the purchased stock in order to receive favorable long-term capital gains tax treatment on a portion of your gains when the shares are sold.
Open an Account
You can find articles, FAQs, tutorials, forms, and a glossary in the Resource Center.
Contact Us
- 800-654-2593
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- Find a branch
Schwab Stock Plan Specialists are available by phone, Monday through Friday, 24 hours a day.
Outside the U.S.:
Call toll-free with an international dialing instructions.
Speak with a Schwab Stock Plan Specialist:
800-654-2593
Monday through Friday, 24 hours a day
Outside the U.S.:
Call toll-free using our
international dialing instructions.