Tax Facts

3621 / Are ISOs subject to ERISA reporting requirements?

An ISO generally is not subject to ERISA’s reporting requirements since it is usually not a covered ERISA “employee benefit plan.” Therefore, a summary plan description need not be distributed to participants. An employer must furnish a statement to an employee on or before January 31 of the year following the year in which the employee exercises the ISO, stating details about the options granted.1

1. IRC § 6039(a).

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