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Question

How does the ISO post-termination exercise period operate?

Answer

For incentive stock options, the post-termination exercise period is generally 90 days from your last day of employment. This 90-day deadline is tied to IRS rules: To preserve the preferential tax treatment of an incentive stock option (ISO), you may need to exercise your options within three months of leaving. After that, ISOs convert to nonqualified stock options and could lose their tax advantages.

Related FAQs

Is it better to exercise stock options before or after leaving a company?

What’s the difference between ISOs and NSOs when leaving a job?

How do I check my equity grant documents before leaving my job?
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Last Updated Nov. 6, 2026
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