RSU Basics & Taxation
How RSUs vest and are taxed, why 22% withholding leaves you short, and whether to sell or hold at vest.
- How are RSUs taxed?In depth
RSUs are taxed as ordinary income at vesting, not at grant or sale. Learn the mechanics, see a worked example, and avoid the common mistakes.
- How are RSUs taxed at vesting?
Shares vest, value hits your W-2, and your employer usually sells some shares to cover withholding.
- What is the RSU withholding rate, and why might it be wrong for you?In depth
RSUs are withheld at a flat 22% federal rate, but that's often below your real bracket. Learn why, and how to avoid a surprise tax bill.
- Should you sell or hold RSU shares at vesting?In depth
Should you sell or hold RSU shares at vesting? The tax is already paid either way. Here are 4 approaches, with a clear default recommendation.
- Restricted stock vs RSUs vs stock options
Three instruments, three tax timelines. Knowing which you hold determines every planning move.
- Performance shares vs RSUs
Performance share units add a goal-based condition on top of time vesting, which changes both payout and timing.