Company: RGNX
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-052069
Chunk: 87

Company: REGENXBIO Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 87
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 income that the participant recognizes from awards under the 2025 Plan. In general, the amount that the participant recognizes as ordinary income under the 2025 Plan is treated as “self-employment income” under SECA. The participant is required to pay additional federal income tax under SECA with respect to the participant’s self-employment income and to account for the additional tax in any estimated federal tax that the participant is required to pay. When determining the participant’s adjusted gross income, the participant may deduct one half of the self-employment tax as a business expense.

The participant’s self-employment income is subject to self-employment tax at the maximum rate (currently 15.3%) to the extent that the participant’s aggregate self-employment income for the year does not exceed the “taxable wage base” for that year, reduced by any wages on which the participant has paid FICA tax as an employee during the year. The participant’s self-employment income is subject to self-employment tax at a reduced rate (currently 2.9%) to the extent that such income exceeds the taxable wage base (reduced by FICA wages) for the year. Accordingly, the participant must pay self-employment tax under SECA equal to at least the reduced rate times the amount of ordinary income that the participant recognizes in connection with any award. An additional 0.9% Medicare tax for high-income earners is applied to earnings in excess of $200,000 for single taxpayers, $125,000 for married taxpayers filing separately, and $250,000 for married taxpayers filing jointly.

Tax Effect on the Company

The Company generally will be entitled to a tax deduction in an amount equal to the ordinary income that the participant recognizes when the participant exercises an NSO or makes a “disqualifying disposition” of ISO shares. In the case of restricted shares and RSUs, the Company generally will be entitled to a deduction in the amount the participant recognizes as income. The Company will be entitled to claim the deduction in the same taxable year in which the participant recognizes ordinary income.

The Company may claim a deduction only to the extent that, among other things, the amount qualifies as an ordinary and necessary business expense. With respect to certain executives, moreover, the Company generally cannot claim a deduction to the extent that the executive’s total compensation from the Company (including certain compensation earned pursuant to the 2025 Plan) exceeds $1,000,000 for the taxable year.

The Company ordinarily will not be entitled to any deduction on the grant of