If you're an employee of Ally Bank, you have access to a valuable benefit: the Employee Stock Purchase Plan (ESPP). This guide will break down everything you need to know about Ally's ESPP, from eligibility and contribution details to how you can maximize your earnings with Benny's support.

Make More Money from your Ally ESPP with Benny’s New Program

Benny manages your Employee Stock Purchase Plan (ESPP) to make you more money without disrupting your take-home pay.

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Here’s a quick rundown of how Ally’s ESPP works.

• Discount: 15% off the stock price.

• Contribution Limit: Up to 10% of your salary.

• Offering Period: Six months, with purchase dates twice a year.
  
  

How Ally's ESPP Works:

• Payroll Contributions: You can allocate up to 10% of your salary to purchase Ally stock. These contributions are automatically deducted from each paycheck.

• Stock Purchase: At the end of the six-month offering period, your contributions will be used to buy Ally shares at a 15% discount based on the lowest stock price at either the beginning or end of the period.

• Lookback Feature: The lookback provision ensures you get the best deal on stock, purchasing at the lower price between the start or end of the offering period. This minimizes your risk and maximizes your potential gain.

• IRS Cap: You can purchase up to $25,000 worth of stock per year, as set by IRS rules.

Once the stock is purchased, the shares are deposited directly into your brokerage account. You can choose to hold onto the shares to watch their value grow or sell them for an immediate profit.

Why Participate in Ally Bank's ESPP?

Ally’s ESPP is an easy way to build wealth by purchasing company stock at a discount. Here's why you should consider participating:

• Instant 15% Gain: Whether you choose to hold or sell your shares, you immediately benefit from the 15% discount.

• Low Risk with the Lookback Feature: With the lookback feature, you are protected from stock price fluctuations during the offering period, ensuring you buy stock at the best possible price.

• Wealth-Building Potential: Use your ESPP gains to build an emergency fund, pay down debt, or invest in your future. Many employees use their ESPP gains for retirement savings or down payments on a home.

If you'd like to max out your Ally ESPP without impacting your cash flow or liquidity, Benny allows you to maximize your ESPP without impacting your take-home pay. Benny’s management and funding service allows you to make the most of your ESPP while preserving your paycheck for other expenses.

How to Participate in Ally’s ESPP:

To participate, you need to have completed at least 30 days of service at Ally Financial or one of its subsidiaries. You can enroll in the ESPP during the offering periods, which typically start around May 16th and November 16th. The enrollment process is easy and can be done through Ally’s employee benefits portal. Just set your contribution rate—up to 10% of your salary—and you're ready to go.

Selling Your ESPP Shares:

Once the shares are purchased and deposited into your brokerage account, you have two main options:

1. Sell Immediately: Lock in your 15% gain and pay ordinary income tax on the profit.

2. Hold for Long-Term Gains: If you wait at least 1.75 years before selling, you may qualify for lower long-term capital gains tax rates. However, holding carries the risk of stock price fluctuations.
   
   

Maximize Your ESPP with Benny:

If cash flow is a concern, Benny offers the perfect solution. By funding your ESPP contributions, Benny ensures that you can participate fully in the plan without compromising your monthly budget. On average, Benny’s users earn an extra $3,000 per year through their ESPP.

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