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CHAPTER 3

How much can I contribute to my ESPP? (among other contribution questions)

ESPP Questions


  • HOW MUCH CAN I CONTRIBUTE TO THE ESPP?
  • Your employer determines what percentage or dollar amount of your salary can be contributed to the ESPP, as set forth in your company’s plan documents. This information is reflected on StockPlan Connect. For example, “You can contribute between 1% and 10% of your salary per pay period,” or “You can contribute between $1 and $500 of your salary per pay period.”

  • HOW MUCH WILL I PAY FOR MY ESPP SHARES?
  • The price that you pay is determined by your company’s ESPP plan documents. Your company’s ESPP may, but is not required to, offer a discounted price on the shares you purchase. You will also see the price for each purchase date listed on the Transaction History screen on StockPlan Connect. Note: in most jurisdictions, you are not taxed when the shares are purchased, even though they may be purchased at a discount. Please check with your local payroll or tax advisor for more details.

  • WHEN CAN I MAKE CHANGES TO MY CURRENT ENROLLMENT ELECTION?
  • You can make changes to your current enrollment election during specific time periods that your company has established. For example, your company may allow you to change your contribution amount or withdraw from the ESPP at any time during the purchase period. Please check your company’s plan documents for the specific information pertaining to your company’s plan.

  • CAN I CHANGE MY CONTRIBUTION AMOUNT?
  • Yes, if your plan allows it. You can find this information by referring to your company’s plan documents. If your plan permits contribution changes, you can go to the StockPlan Connect login page, click on the “Enroll or adjust your contributions” link, and follow the prompts. If you already have an account established, you can also change your contribution amount by logging in to StockPlan Connect with your User Name and Password.

  • HOW DO I STOP MY CONTRIBUTIONS? AM I RESPONSIBLE FOR NOTIFYING MY EMPLOYER?
  • You can stop or suspend your contributions by clicking on the “Enroll or adjust your contributions” link on StockPlan Connect or logging in to your account; click on the “Withdraw” or “Suspend” button. Morgan Stanley will notify your company within one payroll cycle.

  • WHAT’S THE DIFFERENCE BETWEEN WITHDRAWING FROM THE ESPP AND SUSPENDING MY CONTRIBUTIONS?
  • Both withdrawing and suspending will stop your ESPP contributions. Your company may give you the option to either obtain a refund or purchase your shares with the funds you have already set aside in the current purchase period. Please refer to your company’s plan documents to determine the specific rules regarding withdrawals and suspensions in your company’s ESPP.

  • IF I SUSPEND MY CONTRIBUTIONS OR WITHDRAW FROM THE ESPP BEFORE A PURCHASE, WHAT HAPPENS TO ANY MONEY THAT HAS ALREADY BEEN COLLECTED?
  • Depending on your company's ESPP plan documents, your employer will stop your contributions and either refund the money you’ve contributed or use the money you’ve contributed up to that point to purchase shares on the purchase date.

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