Transfer of ESPP is not available for many, many years

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8301
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Transfer of ESPP is not available for many, many years

Post by 8301 »

My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
CascadiaSoonish
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Re: Transfer of ESPP is not available for many, many years

Post by CascadiaSoonish »

Once the ESPP shares are purchased in your company-provided account you're not able to sell or transfer them out immediately?

That doesn't sound right. That's your money in the form of discounted shares.
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rob
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Re: Transfer of ESPP is not available for many, many years

Post by rob »

There is no way there is an 80 year lock on shares....
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
dcabler
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Re: Transfer of ESPP is not available for many, many years

Post by dcabler »

8301 wrote: Mon Mar 20, 2023 11:58 pm My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
I don't understand those two comments:
You can't sell within 6 months since purchase
Most shares aren't transferrable for 20 to 80 years.

The can't sell for a certain amount of time, sadly, does exist for some plans. I've worked for a number of different employers, but never had this restriction. I could sell the day the shares showed up in my account. In fact that's what I always do. I wouldn't participate in any plan that had a sell restriction like yours.

I don't understand the second part. If you can sell them after 6 months, then what does a transfer mean? Transfer unsold shares to another brokerage?

cheers.
Topic Author
8301
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Re: Transfer of ESPP is not available for many, many years

Post by 8301 »

dcabler wrote: Tue Mar 21, 2023 4:36 am
8301 wrote: Mon Mar 20, 2023 11:58 pm My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
I don't understand those two comments:
You can't sell within 6 months since purchase
Most shares aren't transferrable for 20 to 80 years.

The can't sell for a certain amount of time, sadly, does exist for some plans. I've worked for a number of different employers, but never had this restriction. I could sell the day the shares showed up in my account. In fact that's what I always do. I wouldn't participate in any plan that had a sell restriction like yours.

I don't understand the second part. If you can sell them after 6 months, then what does a transfer mean? Transfer unsold shares to another brokerage?

cheers.
A transfer means shares leaving the ESPP custodian (brokerage) or a change of ownership of the shares without being sold.
privateer79
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Re: Transfer of ESPP is not available for many, many years

Post by privateer79 »

is this some kind of private company whose share's aren't publicly traded???

I've never heard of something like this for publicly traded shares.
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8301
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Re: Transfer of ESPP is not available for many, many years

Post by 8301 »

privateer79 wrote: Tue Mar 21, 2023 11:56 pm is this some kind of private company whose share's aren't publicly traded???

I've never heard of something like this for publicly traded shares.
It is a public company with a market cap of triple digits billions. When ESPP shares are sold, the discount on purchase has to be added to a W-2 form. I assume the brokerage house is supposed to report the sale to the company. I think it is easier to track the movement of the shares if the shares are locked in the brokerage where they were issued.
HornedToad
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Re: Transfer of ESPP is not available for many, many years

Post by HornedToad »

Just sell after the 6 month lockup. The transfer sounds irrelevant if you just sell (if it’s even accurate with 80yr period)
dcabler
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Re: Transfer of ESPP is not available for many, many years

Post by dcabler »

8301 wrote: Tue Mar 21, 2023 11:52 pm
dcabler wrote: Tue Mar 21, 2023 4:36 am
8301 wrote: Mon Mar 20, 2023 11:58 pm My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
I don't understand those two comments:
You can't sell within 6 months since purchase
Most shares aren't transferrable for 20 to 80 years.

The can't sell for a certain amount of time, sadly, does exist for some plans. I've worked for a number of different employers, but never had this restriction. I could sell the day the shares showed up in my account. In fact that's what I always do. I wouldn't participate in any plan that had a sell restriction like yours.

I don't understand the second part. If you can sell them after 6 months, then what does a transfer mean? Transfer unsold shares to another brokerage?

cheers.
A transfer means shares leaving the ESPP custodian (brokerage) or a change of ownership of the shares without being sold.
Interesting. I've never run across that one before...

Cheers.
dcabler
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Re: Transfer of ESPP is not available for many, many years

Post by dcabler »

HornedToad wrote: Wed Mar 22, 2023 12:46 am Just sell after the 6 month lockup. The transfer sounds irrelevant if you just sell (if it’s even accurate with 80yr period)
Kinda what I'm thinking. If you really like the stock and you're willing to take the chance of being out of the market for a few days and possibly deal with a wash sale, you can always repurchase shares in your brokerage account with the proceeds.

Cheers
squirrellyman
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Re: Transfer of ESPP is not available for many, many years

Post by squirrellyman »

8301 wrote: Mon Mar 20, 2023 11:58 pm My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
My company’s ESPP also has a “transferable date,” but only a few years in the future. Regardless, we can sell them as soon as they show up in our account. I’ve been doing that for years.
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SmileyFace
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Re: Transfer of ESPP is not available for many, many years

Post by SmileyFace »

I have never looked at nor considered terms related to transfering ownership of ESPP shares after purchase nor transfering to another brokerage so don't know if there is a restriction. I view what I make on ESPP as simply additonal income always immediately selling. If I would to guess - sounds like your company made a deal with the brokerage to allow them to retain clients.
Sell at the 6 month mark so the transfer restriction does not apply.
Strange they have some kind of variable limitation up to 80 years - seems insane. It's almost like they are encouraging employees to sell. Maybe cut and paste the terms here - curious
KRP
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Re: Transfer of ESPP is not available for many, many years

Post by KRP »

8301 wrote: Tue Mar 21, 2023 11:52 pm
dcabler wrote: Tue Mar 21, 2023 4:36 am
8301 wrote: Mon Mar 20, 2023 11:58 pm My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
I don't understand those two comments:
You can't sell within 6 months since purchase
Most shares aren't transferrable for 20 to 80 years.

The can't sell for a certain amount of time, sadly, does exist for some plans. I've worked for a number of different employers, but never had this restriction. I could sell the day the shares showed up in my account. In fact that's what I always do. I wouldn't participate in any plan that had a sell restriction like yours.

I don't understand the second part. If you can sell them after 6 months, then what does a transfer mean? Transfer unsold shares to another brokerage?

cheers.
A transfer means shares leaving the ESPP custodian (brokerage) or a change of ownership of the shares without being sold.
Usually, this is to make it easier for the employer to track the shares during the period where you might make a non-qualified sale (employer has to carry out proper tax treatment when sold), though I have never seen it be 20 or 80 years.
Topic Author
8301
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Re: Transfer of ESPP is not available for many, many years

Post by 8301 »

KRP wrote: Wed Mar 22, 2023 3:20 pm
8301 wrote: Tue Mar 21, 2023 11:52 pm
dcabler wrote: Tue Mar 21, 2023 4:36 am
8301 wrote: Mon Mar 20, 2023 11:58 pm My employer's ESPP has a holding period of 6 months. I cannot sell them within 6 months since purchase. Most of the shares are not transferrable for a long, long time. They range from over 20 years to over 80 years. Is it a common practice? Why do they impose such long blackout period for transfer?
I don't understand those two comments:
You can't sell within 6 months since purchase
Most shares aren't transferrable for 20 to 80 years.

The can't sell for a certain amount of time, sadly, does exist for some plans. I've worked for a number of different employers, but never had this restriction. I could sell the day the shares showed up in my account. In fact that's what I always do. I wouldn't participate in any plan that had a sell restriction like yours.

I don't understand the second part. If you can sell them after 6 months, then what does a transfer mean? Transfer unsold shares to another brokerage?

cheers.
A transfer means shares leaving the ESPP custodian (brokerage) or a change of ownership of the shares without being sold.
Usually, this is to make it easier for the employer to track the shares during the period where you might make a non-qualified sale (employer has to carry out proper tax treatment when sold), though I have never seen it be 20 or 80 years.
One ESPP tranche is available for transfer on 12/31/2098! No mistake. I checked the date many times. Others are available in 20+ years.
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rob
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Re: Transfer of ESPP is not available for many, many years

Post by rob »

8301 wrote: Wed Mar 22, 2023 3:58 pm One ESPP tranche is available for transfer on 12/31/2098! No mistake. I checked the date many times. Others are available in 20+ years.
Oh for a transfer of broker: I think you'll find what you see is just a default "high" date..... As above there is some reporting to the W2 while your employed.
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
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Re: Transfer of ESPP is not available for many, many years

Post by Jack FFR1846 »

Sounds like a lazy employer. I can transfer my shares immediately. My employer sends a general email to the company email list with instructions for those who have transferred shares and then sold them.
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