When employees find out they're getting equity compensation from their employer, their first reaction is typically, "Great!" Their second reaction is often, "How does this work?" Both reactions are understandable. In most cases, equity compensation is a net win for employees. It rewards you for a Read more…
Top Questions to Ask About Your Restricted Stock Units Grant
You’ve just been granted restricted stock units (RSUs). Congratulations! You’re likely here because you’re curious to know what questions you should ask your employer or your financial advisor about this unique income stream to avoid unexpected surprises in the form of an outsized tax bill or Read more…
RSUs vs. RSAs: A Guide to Understanding Key Differences and Tax Treatment
When it comes to employee compensation, one size rarely fits all. Companies often customize equity awards to align with their goals and incentivize employee performance. For many, this means one of a few popular options: stock options, Employee Stock Purchase Plans (ESPPs), Restricted Stock Units Read more…
The Most Common RSU Mistakes — And How to Avoid Them
Restricted Stock Units (RSUs) can be a powerful incentive and useful tool for building wealth, but they aren’t as simple as purchasing shares on the market. If managed improperly, RSUs can lead to surprise tax bills, underpayment penalties, overconcentration in company stock, and even legal Read more…
How Are Restricted Stock Units Taxed? Vesting, Withholding, and Selling Explained
The Short Answer: How are RSUs taxed? RSUs are taxed as ordinary income when they vest—not when they’re granted. At the moment of vesting, the fair market value of the shares is added to your taxable wages. After vesting, any change in value is taxed again as capital gains when you sell. This is Read more…
The Best Strategies for Selling Company Stock
Company stock options are an exciting perk. Selling those options is another story. Read more…
Net Unrealized Appreciation (NUA) Transfers of Company Stock from a 401(k): The Tax Benefits and How to Do It Right
As a high-earning top performer in your company, managing your compensation wisely is essential for maximizing your benefits, especially when that comes in the form of stock options or other types of equity compensation. Read more…
ESPP Shares: To Sell or Not to Sell?
The Short Answer: Should I sell my ESPP shares? You should generally plan to sell your ESPP shares soon after they’re purchased. ESPP shares are best treated as a tool to capture the built‑in discount—not as a long‑term investment—because holding increases both tax complexity and concentration risk Read more…
When and How to Sell Restricted Stock Units (RSUs)
The Short Answer: Should I sell my RSUs? Yes— many people choose to sell their RSUs soon after they vest as a way to manage taxes and concentration risk. RSUs are taxed immediately at vesting and function like a bonus paid in company stock, so holding them increases your concentration risk without Read more…
How Much Money Should You Contribute to a Deferred Compensation Plan?
The Short Answer: How much should I contribute to deferred compensation? There’s no one-size-fits-all number—you should only contribute to deferred compensation after you have strong cash flow, have funded your emergency savings, paid off high‑interest debt, and maxed your 401(k) and IRA. From Read more…
