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Somewhat lucky that in the UK it's no less tax efficient to sell straight away, which is what I always do. I know of a non-zero amount of people though in the
by philjohn 5y ago
Somewhat lucky that in the UK it's no less tax efficient to sell straight away, which is what I always do.
I know of a non-zero amount of people though in the US hit by the low withholding on RSU's and then having a big tax bill, based on their value at vest before a stock drop.
- bagacrap 5y agothere shouldn't be a low withholding on RSUs if your settings are correct, e.g. "I expect to make more than 400k this year". it shouldn't matter if stocks drop after vest since the withholding is taken out of the RSU vest amount.
- mrep 5y agoReally? Mine defaults to 22% on morgan stanley and I have to manually withhold extra from my salary. It also does not withhold any for state taxes which I also have to do with my salary. I don't think I can withhold either from the RSU sale.
- _huayra_ 5y agoYeah I think the standard is to sell some percentage of the RSU grant each time there is a distribution (to cover the taxes of getting it as income). Unfortunately this is usually insufficient in most companies and one will likely still owe a big chunk of change to the IRS each year as a result. One can ask for extra withholding, but it's a bit tricky to figure out until one has worked for a given company / comp level for a given year.
- philjohn 5y agoYes - it's different in the UK, I have the full 47% sold before disbursment of stock (well, 48.25% from next vest).