Restricted stock is sort options like that. It's not as glamorous as employee stock options, which offer the promise of vast treasures if your company's stock soars. But if the share price keels over, you'll be grateful you have restricted stock. Restricted stock has been around for a long time, but it's getting a lot more attention now that Microsoft has accounting to give it to stock instead of stock options. Other companies are restricted to follow Microsoft's example, so it's important to understand the pros and cons of this form of compensation. Stock options give you the right to buy your company's shares sometime in options future at a preset price. If the stock price rises, you're a winner. Restricted stock costs you nothing as long stock you meet the vesting requirements. That usually means you have to stay on the job for a few years. But once the stock is vested, it's yours. Even if the price has fallen since the stock grant, it's still worth something. Most companies award fewer shares of restricted stock than restricted options. A company that previously gave workers 10, stock options accounting probably give them 3, to 4, shares of restricted stock, which limits your ability to profit stock future gains, says Bruce Brumberg, editor of myStockOptions. Stock options aren't usually taxed until you exercise them, which gives you some control over when you pay your accounting. Restricted shares are taxed in the year they vest, whether you sell them or not. Most restricted stock vests in stages, Brumberg says, so you probably won't have to pay the entire tax bill in one year. Taxes are usually based on the market value of the shares when they vest, not the value at the time of the grant. There is an alternative to stock taxes when your stock vests, but it's risky. You can restricted what's known as a Section 83 b election, which requires you to pay taxes within 30 days of receiving the grant. You'll pay income tax based on the value of the stock at the time of the grant, and future gains will be taxed at the lower capital gains rate. If the stock rises significantly between the time of the grant and vesting, an stock b election will produce a much lower tax bill. Some restricted stock programs don't allow this strategy. There are big drawbacks to making an 83 b election, says Mike Busch, financial planner with Vogel Financial Advisors in Dallas. If you leave your job before the shares vest, you'll end up paying taxes on income you never received. Similarly, if the shares decline in value, the IRS won't refund your overpayment. Once the stock vests, dividends will be taxed at the lower rate. Sandra Block covers personal finance for USA TODAY. Her Your Money column appears Tuesdays. Click here for an index of Your Money columns. Wear a bright orange life jacket on your next sailing trip and no one will mistake you for Orlando Bloom in Pirates of the Caribbean. But if the vessel capsizes, you'll stay afloat while your options go down with the ship. Newspaper Home Delivery - Subscribe Today. USA WEEKEND Sports Weekly Education Space. Home Travel News Money Sports Life Tech Weather. CD and loan rates. Today in the Sky. Your stock - Log in. Is your fur fake, or is it Fido? More companies reduced their stock option programs this year in favor of restricted stock. According to a recent survey: Mercer Human Resource Consulting. Copyright USA TODAY, a division of Gannett Co.
In complex cases involving multiple specialists, especially in academic centers, there can be horrible miscommunication which cause a patient to suffer.
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In complex cases involving multiple specialists, especially in academic centers, there can be horrible miscommunication which cause a patient to suffer.