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…
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…
What Are Restricted Stock Units (RSUs) and How Do They Work?
Employers grant restricted stock units (RSUs) for various reasons: outstanding performance, tenure, company milestones, or simply as a token of appreciation to drive employee retention, but often there is minimal guidance on what these are or how to build them into your financial plan to maximize Read more…
Deferred Compensation: What It Is and How It Compares to a 401K
Saving enough for a comfortable retirement in a way that is tax-advantaged can require getting creative at times. Numerous options exist for stashing your discretionary money in a retirement account, but not all options are created equal, nor are they taxed the same. An often-overlooked option, Read more…
Synthetic Equity Explained: Your Guide to Understanding This Type of Deferred Compensation
Synthetic equity. Phantom stock. Stealth securities. Read more…
How Much Money Should You Contribute To Your ESPP?
The Short Answer: How much should you contribute to an ESPP? How much you should contribute to your ESPP depends on your cash flow, debt, and savings. With lower‑interest loans or a small emergency fund, contribute a modest, comfortable percentage. If you have no debt and strong savings, aim to Read more…
The Untold Advantages of Your Employee Stock Purchase Plan (ESPP)
Congratulations! Your employer has an Employee Stock Purchase Plan (ESPP)! It’s easy to know what to make of excellent healthcare or an annual bonus, but it’s harder to wrap your head around how to participate in a well-managed ESPP. Should you participate? How much should you contribute? Is it Read more…
Tax Planning for Equity Compensation
Equity compensation comes in several forms, including stock options, restricted stock units and employee stock purchase plans (ESPP). Each type of equity grant gives employees a stake in their employer’s financial success and a chance to boost their income. Read more…
