A section 83(i)election freezes the value of restricted stock for compensation purposes on the vesting date.

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A section 83(i) election allows employees to defer the recognition of income on the vesting of certain qualified stock grants for up to five years. During this deferral period, the value of the stock is frozen for compensation purposes, preventing any increase in value from being taxed as income.

A Section 83(i)election Freezes the Value of Restricted Stock for Compensation