What happens to your options if you are laid off?

A layoff starts a clock. Most plans give you 90 days to exercise vested options or lose them entirely.

The standard window

90 days post-termination for vested options. Some companies offer extended windows of up to ten years — check your plan documents, not your offer letter.

ISO conversion

ISOs exercised more than three months after termination are treated as NSOs, taxed as ordinary income at exercise.

Unvested equity

Unvested options and RSUs are almost always forfeited unless your severance provides for acceleration.

This article is educational and not tax, legal, or financial advice. Talk to a CPA or tax advisor about your specific situation.

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