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Sacramento financial planner | Restricted Stock Units (RSUs)

Worried too much of your net worth is concentrated in company stock or Restricted Stock Units (RSUs)? 

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our recently-published white paper on
Restricted Stock Units (RSUs)

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Worried too much of your net worth is concentrated in company stock or Restricted Stock Units (RSUs)? 

Taxation of restricted stock units RSU vs Stock Options 2023 WhitepaperRestricted Stock Units (RSUs) can be a significant component of an employee compensation package. But what exactly is an RSU? How are they treated for tax purposes? How do you plan most effectively when your RSUs vest?

Here are four basic facts about RSU restricted stock shares and taxes:

  • Your RSU /equity compensation award is considered ordinary income, and the taxation of restricted stock units occurs in the year your grant vests and/or shares are delivered to you.
  • Your compensation is the fair market value (FMV) of the stock at the time of vesting, less the amount (if any) you paid for the shares, multiplied by the number of shares vested.
  • If you are a salaried worker, your employer should include the value of your RSU award in your W-2.
  • If you sell your vested stock options, you may owe tax on any capital gains.

You work hard to build your net worth, but may not have the time, depth of knowledge, or interest to properly coordinate all of your financial affairs, research your own investments, or design a successful longer-term financial plan, especially where stock based compensation or vested stock options are concerned.

If you receive stock based compensation or restricted stock shares, do you understand what vested stock options and taxation of Restricted Stock Units mean to your net worth?

Utilized correctly, restricted stock units/restricted stock shares can be a wonderful complement to a traditional compensation package and can contribute substantially to an employee’s net worth. The overlying risk is that an employee can have too much of their net worth concentrated in one individual stock and for that matter, one individual company.

Where should you turn with questions about managing your RSUs, restricted stock shares, 401(k), and other company benefits? Join other technology employees and find a team of disciplined professionals that can help you make objective and smart decisions about your financial future.

At Towerpoint Wealth, Sacramento Financial Planner firm, we work directly with leading experts across a range of disciplines—including tax management and minimization, employee benefits, estate planning, real estate, insurance, and liability management—to provide a fully integrated approach to your financial goals. And, Towerpoint Wealth is a fiduciary: We are legally and personally obligated and committed to acting in your best interests.

We help you remove the hassle of properly managing your financial affairs – so you can live a happier life and enjoy retirement.

Sacramento Wealth Advisor - Towerpoint Wealth Team

Joseph Eschleman, Joseph Eschleman | Jonathan W. LaTurner – Partner, Wealth Advisor | Michelle Venezia, Client Service Specialist  | Steve Pitchford, CPA, CFP®️ – Director of Tax and Financial Planning |  Luis Barrera, Marketing Specialist | Megan M. Miller, EA, Associate Wealth Advisor | Lori A. Heppner – Director of Client Services | Nathan P. Billigmeier – Director of Research and Analytics

Sacramento Financial Planners, Towerpoint Wealth Financial Planning Firm


Fill out form below and receive
our recently published white paper on
Restricted Stock Units (RSUs)

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