Employee Stock Purchase Plan (ESPP)
Overview
Upstart's Employee Stock Purchase allows eligible employees to purchase Upstart stock at a discount through payroll deductions.
PLAN BASICS
Offering Periods | February 15 - August 15 and August 15 - February 15 |
Eligibility | Full-time employees hired before the period starts |
Enrollment Window | Opens ~3 weeks before each period, lasts ~2 weeks |
Contribution Range | Up to 15% of base salary |
Purchase Price | 85% of the lower of:
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Where Shares Go | Deposited into your Charles Schwab account |
Purchase Date | Last day of the Offering Period; purchased shares through ESPP will be deposited to your Charles Schwab account as soon as administratively possible following the Purchase Date. |
Managing Your ESPP
If you are… | Action |
Not enrolled | Enroll during open enrollment and choose % |
Already enrolled | No action needed—your rate carries forward |
Want to change your rate | One decrease allowed per period (no increases allowed) |
Want to withdraw contributions | Allowed before purchase cut off date before purchase date via your Schwab account |
Selling Your Shares: Tax Treatment
Qualifying Disposition | Disqualifying Disposition | |
When you sell |
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Tax on 15% discount | Treated as ordinary income | Treated as ordinary income |
Tax on additional gain | Treated as long-term capital gain | Treated as short-term capital gain |
Holding your shares until they qualify for long-term tax treatment may potentially lower your tax bill.
- $25,000 IRS Limit: You may only purchase up to $25,000 worth of discounted shares (based on market value at the start of the offering) in a calendar year. Learn more.
- You can only decrease your contribution mid-period—no increases allowed.