The primary difference lies in the tax treatment. Exercising NSOs triggers ordinary income tax on the bargain element, regardless of the exercise method. Exercising ISOs generally does not trigger ordinary income tax, but the spread may expose you to the alternative minimum tax (AMT). Additionally, ISOs have strict holding period requirements to maintain their preferential tax status.
We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.
