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Why do you say 50% taxes on RSUs? You pay tax on them as normal income for their equivalent cash value at vesting. If you want to immediately sell you can. RSUs
by erentz 9y ago
Why do you say 50% taxes on RSUs? You pay tax on them as normal income for their equivalent cash value at vesting. If you want to immediately sell you can. RSUs suck only when the company has one year vesting schedules. Quarterly or monthly vesting schedules work fine by me.
- usaar333 9y agoI was unclear in my post and sadly the edit timeout has passed. You pay taxes on RSUs not at vesting, but when they settle into shares. This might be shortly after vesting; it might be delayed until an acquisition/IPO. (generally it is delayed for companies far away from IPO). The delay causes multi-year income to be batched into a single year. With a progressive tax system, that results in your money being taxed at a rather high marginal tax rate: If you have a substantial amount you vest a year, it's easiest to use the highest marginal bracket as a conservative guess of what you'll be taking home. In California, that's somewhere on the order of 48% combined state + federal.