Esops are great but they have downsides such as esop stocks earned stock value goes against your maximum tax free disbursement to 401k…
Which is like 23000 so lets say you are 60 but fucked around and didn’t do 401k in the past, now you want to hit that account with as much as possible.
Lets say you get 20k in esop stocks (which is not real money with real value) you have to count that against your tax free limit so guess what? You get to pay taxes against your real money because of your fake money.
Esops are great but they have downsides such as esop stocks earned stock value goes against your maximum tax free disbursement to 401k…
Which is like 23000 so lets say you are 60 but fucked around and didn’t do 401k in the past, now you want to hit that account with as much as possible.
Lets say you get 20k in esop stocks (which is not real money with real value) you have to count that against your tax free limit so guess what? You get to pay taxes against your real money because of your fake money.