Two high-stakes career transition decisions that both require careful pre-exit financial modeling. QSBS holders need to understand their §1202 exclusion under the new OBBBA tiered rates before any liquidity event. Federal employees evaluating a VSIP/buyout need to model FERS annuity NPV, FEHB value, and the cash break-even before signing anything. Both are one-way doors.
The One Big Beautiful Budget Act (OBBBA) restructured §1202 for stock acquired after July 4, 2025: exclusion is now tiered by holding period — 50% at 3 years, 75% at 4 years, 100% at 5+ years — up to a per-taxpayer cap of $15M (vs. pre-OBBBA $10M). For stock acquired before July 4, 2025, old rules apply (100% exclusion at 5 years, $10M cap). Non-excluded gain is taxed at 28%, not standard LTCG rates. The tool models both pre- and post-OBBBA scenarios, applies the $10M/$15M per-issuer cap, shows the state non-conformity warning (several states don't honor federal QSBS treatment), and checks the $75M gross asset threshold for QSBS eligibility. Run before any sale — the 3- vs. 4- vs. 5-year timing can make a significant dollar difference.
Open QSBS §1202 Exclusion Calculator →The FERS annuity formula is 1% × high-3 salary × years of service (1.1% if age 62+ with 20+ years). Early departure without a VERA/VSIP qualifying event triggers an age penalty of 5% per year below your Minimum Retirement Age for deferred annuity. The tool computes: FERS annuity NPV under each path, VSIP net-of-tax (capped at $25K, taxed as ordinary income), FEHB value NPV (insurance you keep vs. lose), TSP as portable in both scenarios, and a break-even private-sector salary to justify leaving. Verdict fires at 5% NPV threshold. Inputs chain naturally from the context in Step 1 — both tools produce Policy Mandate records that pair for a holistic career-transition review.
Open Federal Employee Buyout Analyzer →