83(b) election

Learn more about common financial terms here.
Need more help? Our team is ready.

Back to Glossary

83(b) election


An 83(b) election is a filing with the IRS that lets a founder or employee pay tax on restricted stock at the time it is granted rather than as it vests. Because the shares are usually worth very little at grant, this can dramatically reduce the overall tax bill. The election must be filed within 30 days of receiving the stock.