Hi everyone. I am looking for some advice as I am new to contributing to ESPP.
My company was an operating unit from a bigger and more recognized company but it still still big in size.
They offer ESPP of 15% discount but 12 month holding period before selling or transferring the shares.
In addition, I may lose some favorable tax treatment if I sell or transfer shares within 24 months after the purchase date. I may not transfer my shares to another broker during this 24-month timeframe.
Is this worth it?
I heard most people sell immediately but it doesn’t seem like I have that luxury. I currently contribute 5% of my paycheck to ESPP for 3 months and the most we can do is 10% of our paycheck but I already contribute 30% of my paycheck to max out 401K and $150 to HSA. I can afford 5% on ESPP but not sure if I should save it instead.
Thank you for any advice!