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I have never, ever heard of the ability to vest RSUs into a 401k (or even an IRA, which would at least make a little bit more sense), has anyone else?
by bri3d 6y ago
I have never, ever heard of the ability to vest RSUs into a 401k (or even an IRA, which would at least make a little bit more sense), has anyone else?
- toomuchtodo 6y agoA company can match 401k contributions with company stock. If you were receiving a rapidly appreciating stock as part of your compensation package, it would make sense to want to have the option (but not the obligation) to receive your Tesla stock in your 401k to shield it from income taxes in the short term. https://www.federalreserve.gov/pubs/feds/2004/200423/200423pap.pdf https://www.federalreserve.gov/pubs/feds/2004/200423/200423p... http://www.pensionrights.org/issues/legislation/company-stock-investments-401k-plans http://www.pensionrights.org/issues/legislation/company-stoc...
- lvh 6y agoIf it was rapidly appreciating surely you'd _want_ the immediate income tax hit and move it to a Roth 401(k)?
- toomuchtodo 6y agoReally depends on your current income, projected retirement income, current and future tax brackets, if your 401k supports Roth contributions and in service conversions, etc. To your point, the goal is to optimize for capital appreciation and minimizing tax drag on that capital for its investment duration.
- lvh 6y agoSurely we can agree that for the specific case we're discussing: TSLA TTM, you would prefer the Roth version of that at every income level if it was available.
- toomuchtodo 6y agoI agree.