How does the 15% ESPP limit work? My December 2022 contribution was way less than what I'd allocated through my paycheck, and the 2022 total comes out to 20k, less than the IRS Limit of 25k. Does the remainder that I had deducted from my paycheck go into the fidelity account as cash or will it be in the next paycheck?
Contribution limit is determined by the share price at the beginning of the offering period. Excess contributions are returned in the next paycheck after vesting.
First sentence doesn't make sense. 2nd does, thanks!
https://communications.fidelity.com/pdf/refund-of-espp-contributions.pdf Microsoft doesnโt have a lookback like this example, but for purposes of illustrating how the purchase limit is calculated it doesnโt matter.