4 ms·
My paycheck is quite small due to the massive tax withholding I need to pay the taxes on my RSUs. I don't currently spend more than a fraction of my shares but
by 01100011 3y ago
My paycheck is quite small due to the massive tax withholding I need to pay the taxes on my RSUs. I don't currently spend more than a fraction of my shares but I certainly use some of the proceeds to pay monthly expenses. I also sell company stock as soon as I get it and diversify(currently just buying T-Bills) because keeping all your eggs in one basket(i.e. keeping your wealth in the stock of the company that pays your salary) is bad risk management.
- scarface_74 3y agoYou don’t have the option for the company to just sell enough stock to pay the taxes on the RSUs once they vest?
- 01100011 3y agoNo. Max withholding on RSUs is something like 22% so I have to make up the difference or owe tens of thousands at the end of the year.
- scarface_74 3y agoWhen I was at Amazon (ie until last Friday). We had three options - sell all, sell enough to cover taxes, or sell none of it and pay taxes - some other kind of way that I never looked into. Even if that’s not the case, what’s stopping you from selling enough stock yourself once they vest and make quarterly payments? My tax rate was 22%+7.3% FICA near the end when I moved to Florida - a state with no state income tax.
- 01100011 3y agoNothing stops me. I just don't do that.