Stock Plan Services Employee Stock Purchase Plans Fidelity

Please enter a valid email address Please enter a valid email address Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: " Your email has been sent.

Mutual Funds and Mutual Fund Investing - Fidelity Investments

Clicking a link will open a new window.

h1 Invest in your work and your future with an ESPP

An Employee Stock Purchase Plan (ESPP) is a company-run program that lets you purchase company stock—sometimes at a discount. And that can make it a great way to potentially save for short- and long-term goals.

Go

Start with the basics

New to ESPPs or just need a refresher? Get a glimpse into how things work and some commonly used terms.

Find out what you need to know about an employee stock purchase plan.

Get more familiar with the key steps that occur so you know what happens next.

Learn about the offering period, when shares are purchased, and the price you pay.

Have an ESPP but haven t yet enrolled

If you're eligible and the enrollment window is open, you'll see "Enroll" next to your ESPP's name when you log in to NetBenefits. You’ll be prompted to open your Fidelity Account if it isn't already open (it's where your purchased shares are deposited).

Explore what ESPPs can offer

From enrolling to when shares are purchased and how much you’ll pay, this video covers it all. You’ll also learn more about some of the features ESPPs can offer, like a discount or look-back. Be sure to check your company's plan documents to find out what your specific ESPP might offer.

br br

The IRS limits the purchase of stock in a tax-qualified Section 423 ESPP to $25,000 per calendar year. br br LEARN

br br

In a qualified ESPP, the income from your shares may receive special tax treatment when you sell. br br PLAN

br br

Some plans require shares to be held for a certain period of time before they can be sold or transferred. Check your company's plan documents to see if this applies to you. br br LEARN

br br

Easily sell some of—or all—your shares by initiating a trade with Fidelity. br br ACT

h2 Frequently asked questions

"ESPP" stands for Employee Stock Purchase Plan, which is a type of plan that provides you with a convenient way to buy your company stock. If you enroll, you choose an amount to be deducted from your paycheck, and those deductions accumulate to purchase stock on a predetermined schedule. An ESPP lets you choose the amount that you want to contribute each paycheck to the plan. Depending on your plan, this can be a percentage or a dollar amount. Each pay period, your company deducts this amount (after tax) and holds on to it until it’s time to purchase your shares. On the designated purchase date, your company uses that money to purchase your shares of company stock. Consider how much you can afford to have deducted from your paycheck before you enroll. An ESPP can be a convenient way to save for the future and potentially create extra cash. An ESPP can make saving easy and painless, since there are regular contributions coming from your paycheck (this removes the temptation to spend the money). An ESPP doesn't just offer the ease of routine saving; it can give you another way to participate in your company's potential success. If your company offers a look-back provision, this compares the stock price at the beginning of the offering period with the price on the purchase date and uses the lower amount to calculate the purchase price. Because a look-back feature allows you to buy shares at whichever price is lower, the price at the beginning OR the end of the period, it is an attractive feature. Example 1 – Stock Price Increases: Your company stock is trading at $10/share at the beginning of the offering period and $15/share by the purchase date. With the look-back provision, you get to buy shares at the lower of these two prices, which in this example is $10/share. Example 2 – Stock Price Decreases: Your company stock is trading at $20/share at the beginning of the offering period but falls to $15/share by the purchase date. In this instance, the look-back feature doesn’t apply, and you buy shares at the lower purchase date price, which in this example is $15/share. If you're eligible and the enrollment window is open, you’ll see Enroll next to your ESPP's name when you log in to Fidelity . You'll be prompted to open a Fidelity Account if you don't already have one. This is the account where your purchased shares will be deposited. To finish enrolling, simply choose an amount to contribute and then agree to the terms. For more help enrolling in your ESPP, please review this . It's your chance to get into the ESPP or make changes. During this period, which is predetermined by your employer, you will be able to enroll and select how much you want to contribute from your paycheck.

What’s that word? Find definitions for commonly used terms.

Strengthen your knowledge on a range of topics from personal finance to investing. Please wait while Fidelity's Virtual Assistant loads. Questions?
800-544-9354 * Fidelity's Virtual Assistant uses advanced technology and artificial intelligence to help with frequently asked questions and to enhance your digital experience. It is designed to be both anticipatory and responsive based on your search terms, information you enter in reply to the Virtual Assistant's questions, and your account and other information on file with Fidelity. Fidelity does not guarantee accuracy of the Virtual Assistant's responses or alignment of its suggestions with your intended purpose. The Virtual Assistant does not recommend the purchase or sale of specific securities or digital assets. While it may offer educational information, it does not have the capability to discern what investment choices would be suitable for your personal situation. Do not attempt to place trade orders through the Virtual Assistant; it can provide you with guidance as to how to place a trade at Fidelity, but the Virtual Assistant cannot execute trades on your behalf. Any personal, account or other information you provide to the Virtual Assistant, as well as all search information entered, may be retained, accessible to Fidelity personnel, and used and shared consistent with Fidelity's Privacy Policy. Notwithstanding, you should not provide the Virtual Assistant with credit or debit card information or protected health information. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The Fidelity Investments and pyramid design logo is a registered service mark of FMR LLC. Be sure to open your account. If you don't, you may be subject to additional U.S. IRS-mandated tax withholding on certain transactions. Fidelity Stock Plan Services, LLC, provides recordkeeping and/or administrative services to your company's equity compensation plan, in addition to any services provided directly to the plan by your company or its service providers. Fidelity Brokerage Services LLC, Member NYSE, , 900 Salem Street, Smithfield, RI 02917 2022 FMR LLC. All rights reserved. 945403.3.0

Footer

Stay Connected

Important Information Virtual Assistant is Fidelity’s automated natural language search engine to help you find information on the Fidelity.com site. As with any search engine, we ask that you not input personal or account information. Information that you input is not stored or reviewed for any purpose other than to provide search results. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. Fidelity does not guarantee accuracy of results or suitability of information provided. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. br br Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
796549.1.0