Intel Equity FAQ

Intel uses multiple RSU vesting schedules depending on your grant type. The most common include: 3-year annual vesting (33.3% per year), 4-year annual vesting (25% per year), 3-year quarterly vesting (12 equal installments every quarter), and a 5-year backloaded schedule for inducement grants (0%, 10%, 20%, 30%, 40%). Your specific grant agreement will indicate which schedule applies to you.

Intel's ESPP allows you to purchase company stock at a 15% discount through payroll deductions of up to 10% of your salary (maximum $25,000 per year). The plan has 6-month offering periods with enrollment windows in January and July, and includes a lookback feature that uses the lower of the stock price at the beginning or end of the offering period. Purchases occur semi-annually.

For grants with quarterly vesting, your RSUs begin vesting on the three-month anniversary of your grant date and continue every quarter thereafter according to your vesting schedule. The specific vesting dates and schedule will be detailed in your equity grant agreement.

Your RSUs are taxed as ordinary income when they vest, based on the fair market value of the shares on the vesting date. It's important to note that Intel's tax withholding may not cover your full tax liability, potentially leaving you with a shortfall at tax time. Consider selling enough shares at vesting to cover your total tax obligation or adjusting your W-4 withholding.

Yes, Intel offers a generous 401(k) match of 100% on the first 5% of your base salary contributions, with immediate vesting. The company also offers Roth 401(k) options, discretionary profit-sharing contributions, and supports mega backdoor Roth conversions through after-tax contributions (up to the IRS limit of $69,000 for 2024 if under 50, or $76,500 if 50+).

If you leave Intel, you typically have 90 days after your termination date to exercise any vested stock options. Any unvested options are generally forfeited upon departure. Make sure to review your grant agreements and plan ahead, as the 90-day window can pass quickly.

Intel's Rule of 75 is a retirement provision where your age plus years of service must equal at least 75. Meeting this threshold provides enhanced retirement benefits, including accelerated vesting of equity awards. This can be particularly valuable if you're planning retirement, as it may allow you to retain equity that would otherwise be forfeited.

Yes, if you're at Grade Level 10 or above (Director+ equivalent), you're eligible for Intel's SERPLUS deferred compensation plan. This program allows you to defer up to 60% of your salary and 75% of your bonus or commissions, which can be a valuable tax planning tool for high earners.