Check one offering’s remaining §423 stock-value capacity.

Use employer-supplied facts, not a generic limit

The §423 limit is not a universal $25,000 payroll cap. This tool calculates only when you provide every required fact for one offering from your employer or plan administrator. It never assumes $25,000, zero prior purchases, or a refund rule.

• Starting available §423 stock value for this offering, measured at grant FMV
• Grant-FMV stock value already purchased in this offering
• Enrollment/grant-date FMV per share
• Source as-of date attached to those employer facts
• Whether the plan allows fractional shares
• The plan’s stated handling after the limit—or an explicit unknown

What the §423(b)(8) rule measures

IRC §423(b)(8) limits the rate at which an employee’s rights to purchase stock may accrue under all employee stock purchase plans of the employer and related corporations. The $25,000 measure uses the stock’s fair market value when the option is granted, for each calendar year in which the option is outstanding.

This is not a generic payroll-contribution limit. Purchase-date or current FMV does not expand the grant-FMV ceiling, and a 15% discount does not create a universal $21,250 cash cap.

Synthetic teaching example—not a default or personal estimate

An employer-supplied starting availability of $18,000.00 minus $3,000.00 of grant-FMV stock value already purchased leaves $15,000.00. At an enrollment/grant-date FMV of $47.50 per share, a plan allowing fractional shares has a maximum of 315.7894 additional shares, truncated—not rounded up—to four decimals.

These invented values teach the one-offering arithmetic. They are not form defaults, employer records, or a personal estimate.

What this one-offering calculation cannot establish

One offering cannot establish a participant’s complete §423 position. The employer and related corporations control records across plans and calendar years. This tool does not reconstruct other offerings, accrual or carryover, ordering across years, forfeitures, intervening purchases, payroll cash, or refunds.

Educational information only—not financial, tax, or legal advice. This is not an employer balance, eligibility determination, payroll instruction, or promise of share availability. Confirm the current facts and plan terms with your plan administrator.

Primary sources and math authority

• 26 U.S.C. §423(b)(8), U.S. House Office of the Law Revision Counsel
• 26 C.F.R. §1.423-2(i), Electronic Code of Federal Regulations
• Calculation behavior follows the reviewed ModuEquity ESPP math specification. Actual plan terms and employer records control.