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Qualified stock option |
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Qualified stock optionA US stock option, given to executives and employees, which complies with the requirements of the Internal Revenue Service. A qualified stock option is not subject to tax at the grant date or when exercised.Similar MatchesQualified planQualified planA tax deferred pension plan set up by an employer to enable employees to accumulate tax free savings for retirement benefits. Usually, contributions are made by employer and employee and when income is taken at retirement it is taxable. Qualified Domestic Relations Order (QDRO)Qualified Domestic Relations Order (QDRO)A judgment, decree, or order that gives a pension plan participant access to retirement assets that must be used to pay an ex-spouse or dependent children. Nonqualified planNonqualified planA retirement plan that does not meet the IRS requirements for favorable tax treatment. Qualified plan or trustQualified plan or trustA tax-deferred plan allowing employer and employee contributions that build up savings, which are paid out at retirement or on termination of employment. Tax is paid only when amounts are drawn from the trust. |
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