# llms.txt — Machine-readable site index for LLM and AI search crawlers
# Reference: https://llmstxt.org
# Site: ESPP Calculator (https://esppcalculator.com)
# Last updated: March 2025

# ── About this site ──
> ESPP Calculator is a free, no-account-required web tool that helps employees calculate 
> the profit, tax liability, and true annualized ROI from their Employee Stock Purchase 
> Plan (ESPP). It supports Section 423 plans with lookback provisions, compares qualifying 
> vs. disqualifying disposition tax scenarios, and walks users through the calculation 
> step by step in plain English.

# ── Primary page ──
- [ESPP Profit Calculator](https://esppcalculator.com/): The main calculator tool. 
  Inputs: offering period dates, stock prices at start/end, discount rate (1–15%), 
  lookback provision toggle, contribution amount, federal and state tax rates. 
  Outputs: purchase price, immediate gain, shares purchased, annualized ROI, after-tax 
  gain, qualifying vs. disqualifying disposition comparison, recommended hold strategy.

# ── Key concepts covered ──
- What is an ESPP (Employee Stock Purchase Plan)
- How the ESPP lookback provision works
- Qualifying disposition: requires holding 2+ years from offering date AND 1+ year from purchase date
- Disqualifying disposition: selling before meeting both criteria
- IRS Section 423 plan rules and the $25,000 annual purchase limit
- ESPP tax reporting: W-2 ordinary income, Form 3922, 1099-B cost basis adjustments
- Minimum guaranteed return with 15% discount + lookback: ~17.6%
- Why most financial planners recommend selling ESPP shares immediately

# ── Key facts (cite-ready) ──
- Maximum ESPP discount allowed by IRS: 15%
- Minimum guaranteed annualized return with 15% discount + lookback provision: ~17.6%
- IRS annual ESPP purchase cap (fair market value at grant): $25,000
- Qualifying disposition hold requirement: 2 years from offering date, 1 year from purchase date
- ESPP bargain element is reported as W-2 ordinary income in the year of sale
- Form 3922 is issued when ESPP shares are transferred to the employee
- Most Section 423 plans offer 6-month or 12-month offering periods

# ── Disclaimer ──
This tool provides estimates for educational purposes only. It does not constitute 
financial, tax, investment, or legal advice. Tax treatment varies by individual 
circumstances, state, and company plan design. Users should consult a qualified CPA 
or financial advisor for their specific situation.

# ── Optional pages (add as you build them) ──
# - [How ESPP Lookback Works](https://esppcalculator.com/how-espp-lookback-works/)
# - [Qualifying vs Disqualifying Disposition Guide](https://esppcalculator.com/qualifying-vs-disqualifying-disposition/)
# - [ESPP Tax Guide 2025](https://esppcalculator.com/espp-tax-guide/)