A more nuanced approach is to look at your RSUs as an investment. 43-44. Keep holding them - Too many eggs in one basket. If you think the stock will continue to climb in value, then hang on to it. Unless you need the cash now I’d say don’t sell anything. When you sell, you pay tax on any capital gains (sale price - cost basis). This is called a stock grant. However, you have to sell 11K, so you are effectively just left with 82. paying cash vs selling to cover amounts to the same thing. An RSU is a grant valued in terms of company stock, but company stock is not issued at the time of the grant. As I'm going through the process, I am prompted with… Sjf715. 6K. Any discount you get in buying them is considered taxable income and will also be included in your W-2. I think I saw a post in here about this once before but I can find it when searching. The moment they vested, their value at vesting counts as income and the cost basis of those RSUs are locked in at that price. Not exactly life changing money each month. If you have vested RSUs, I am curious if you:. Rarely is that a good use for your spare cash, so selling RSUs as they invest is almost always the best choice. Also, there are ways to sell non-vested rsu’s to a third party online. I sell those same RSUs and am accountable for the applicable gains. RomanArrow12 • 5 yr. Specific instructions can be read from your broker's portal too. So now they wait for the next best time. eTrade provided a 1099-B with Box A Covered and Non-Covered amounts. 00. Sell-to-cover: Sell enough stocks to cover taxes/fees, keep remaining stock. Depending on your perspective you want to fill up your current LTCG tax bracket by selling the highest/lowest basis stock first. 4: Not Having A Strategic Plan For The Shares. 3 could get you the fastest liquidity, but is also complicated to figure out, especially if it is a smaller, relatively unknown company. Some Restricted Stock Unit (RSU) plans have choices for tax withholding, and you may have a "Sell All" choice, where when the RSUs vest, we will sell all of the shares, withhold the amount needed for taxes, and deposit the remaining cash into your core position. Yeah I did and that's confusing too. 1. People get excited about selling right away - but no one told me in the beginning taxes are a BIG deal. Bank execs get paid a lot in stock. just want to make sure you are aware : when your RSUs vest you are taxed in those RSUs as income and they have 0 gain/loss (well, plus or minus a few days of market fluctuation, generally, before you can trade them) - holding them for a year is better than holding them for less than a year but from a tax pov you probably should just sell them as you get them. There are typically three ways to cover the taxes owed on RSUs: Net shares (company holds back shares to cover the taxes, you get the rest) Sell shares to cover (Fidelity sells shares to cover the taxes, you get the rest) Pay with cash (you keep all the shares) The methods available to you are determined by your employer's plan rules. Besides if they are offering to buy the shares now they obviously are confident in the company. Hello Generally speaking when you receive RSUs, a certain number are sold before they reach your brokerage account to pay the tax that is owed. If you sell the stock in the future and it has gained in value then yes, you'll owe capital gains tax. 3. Warren_Morgan_x100. My state is CA if it is in any way important. Many of us with RSUs cannot sell the day it vests it could be days or weeks later. At that time you will likely take a capital gain or loss on the shares. After you run out of gains to cancel, you can apply 3k of losses toward ordinary income. Most private companies with RSUs fall into two buckets: a) companies looking to go public soon, in which case you could sell your shares after the IPO. After-Tax Value: $39,000. If you had $210,000 sitting in the bank right now, what would you do with it? If the answer isn’t “put it all on CRM” then you should sell, and do whatever you would have done with the cash. Share market value: 64. You can pick mechanical targets to sell. There should be no tax ramifications. Add a Comment. One view is that you’re “invested” when you’re granted shares as an employee and you “hold” the shares until they vest over 1-4 years. If they go up to $120 a share, you will pay capital gains tax on the difference between $7000 and $8400: $1400. Options have a strike price, so let's say strike (price at time of grant usually) is$20, and the stock goes to $25, then each option is worth $5. I haven't sold any stock so far but am now looking to sell a portion to diversify in other inve In February I will be able to sell about ~10K USD of RSU's. This is only 1/5 of my overall shares, the other 4/5 will be vesting over the course of 4 more years. This means for 180 days after the IPO, you cannot sell. Shares are held back to pay taxes. if you sell at a higher value you owe capital gains tax on the difference between sales price and vest price, usually 15 or 20% of that value. I am extremely new to RSUs and investing in general and could use a sanity check. 8. If you vest 1000 RSUs worth $10 each then the IRS considers that exactly the same as being paid $10,000 and will tax it just like cash income received that year. Holding the shares from your RSU is exactly equivalent to getting the bargain element as a W2 income bonus, then going and buying the AMZN shares on the open market. When you exercise stock options or when your RSUs vest, a big mistake is not having a plan ready to go for your newly acquired shares I’m assuming op is talking about the sell to cover that happens when rsu vest. Originally I didn't sell at all, later I sold some, and I'm currently having a more principled approach of selling such that this stock is not over 20% of my equities. Its best if you can develop a plan to sell gradually so that can both get a part of the growth in the stock as well as be well diversified. But if you are reasonably confident it will grow then by all means keep it, just remember its very risky to have all your eggs in one basket. Whatever I sell + part of cash salary I put into VCWE. Sell all shares is the correct answer. Otherwise sell immediately. If you then hold the stock for more than a year, you would pay ltcg on the gain between the amount at vest and the amount when you sell. Then, the sale would be reported as capital gain on schedule D. By selling right away, you can lock in the value of your shares and mitigate potential risks tied to stock market fluctuations. I had a strategy for selling -- when a lot sold I would compute the next sell-at price. I still have about $74K USD yet to vest (which will be closer to $37K USD after taxes are withheld at current market value). •. And, on the w2, the vested rsu amount is reported to account for that. 5% isn't high enough to worry about. Any gain/loss from that basis is a capital gain/loss for your taxes. You should not hold more than 5 maybe 10 percent of your total investment in company stock. . Sell all your shares is the correct option if you value diversified risk. 8% no matter what, and the short term gain mostly at 38. 1025. Each time RSUs vested, my company would perform sell-to-cover (approximately 42% of the grant's worth). No. My debt includes: RSUs are taxed in the same way bonuses are. My advice: Buy as much ESPP as allowed by program and sell after two years (better tax treatment). When you sell the stock you got from the RSUs, the basis of them are the value when they vested (from step 1). Your stock grant will be quoted to you as a dollar amount, say $100,000. If you proceed to sell the stock, you would recognize a capital gain by subtracting the basis from the proceeds. Selling or holding are acceptable decisions, but do your research. Try and sell them on a private marketplace. I’d vote let it ride and hope the company goes public for a bigger pay day. The art of selling RSUs is to do it immediately on vest so you don't have to pay any capital gains tax. (4) set up a 10b5-1 plan that sells After selling 9 lots in December 2019 and January 2020 despite increasing stock price, I halted because the value was below my annual salary. I know it’s hard. Realized gains upon sale: $20,000 - $10,000 = $10,000. Legacy bank employees got some RSUs, but most banks stopped that years ago. You aren't reporting the 6 shares. When you sell them, you pay taxes on the difference between what you sold them for and what they vested at. I would simply sell newer lots first, from both sources, until you have sold as much as you intend to. Same if it was a $10,000 cash bonus. Income is income, and income is taxed. RSUs are income, and are taxed when they vest. That's a loss, and that loss can actually be used to reduce your taxes. Treat an RSU vest like a cash bonus that you used to buy the employer’s stock. That’s 37% for me. eTrade shows that the sell order was placed Monday at around 8:30am ET. jokerfriend6. No matter how much you think of it. So when you file your taxes you end up paying extra. Hold on to them and wait for an IPO or acquisition. Not wanting to put all my eggs in one basket, I want to sell some of the company stock I own. (3) sell at some later time (curious when and what % of vested if you follow this path). Say your RSU's can be liquidated in March. This amount becomes your basis. At my job my RSUs are vesting monthly, and have been for 2+ years. There’s no issue with having more, especially when RSU’s are a heavy piece of one’s compensation, but you have to be aware of over allocation in a single stock. It cancels out capital gains first (15%). My employer grants restricted stock units periodically, and I'm given the option to elect tax payment in one of the following manners: Cash Transfer: Cover taxes/fees with cash, keep all the stock granted. Option 2: 100K vesting, withhold 22K for taxes, so left with 78K which becomes 93. If you hold for less than a year, the cap gains tax is around 35%. Sell some at the current price. . **Sell after 1 year but before 2 years - this is called Disqualifying disposition for long term capital gains. If you have any additional questions about this process, please feel Any-Huckleberry2593. Part of my compensation is 2000 shares that will vest 25% / year over 4 years. Keep the remainder for a rainy day or pay down the loans a little is it makes you feel better. The advice to sell RSUs and treat them as a cash bonus is based on the lack of any tax advantage in holding them coupled with the obvious: that is unwise to buy your own company stock on the open market. I'm in a similar position with mid- 5 figures vesting shortly in a smaller tech company. Anyways - I had about $10k in RSU’s from my employer vest. sell immediately, etc)? I've just started a new job. Stinkypinky007 • 9 yr. The number of shares of stock you get is $100,000 (your grant value) divided by the stock price around the time you join. Allocations could vary, but say you split it, roughly. That is the time to sell, so long as you are not in a black out period if you are a corporate officer. You won’t pay capital gains on growth. The gain is equal to the increase in FMV from date of vest to date of sale. When the stock has gone up in the short term and you still want a position in it but want to protect your gains, just sell some of it. You don't give numbers of shares, let's say you have 10. As a general rule, yes you should sell. If you don't do that you end up with a large concentrated position that you have to unwind later. Personally, I'd cash them and use some to max out a Roth IRA, the most the rest to max out a Roth in 2021. you lose ~$5k. So on day 1 of your receipt the basis is what the ticker price is. 0% or 15 percent brackets depending on your income. You can invest that $415 a month that you're saving on a car payment elsewhere, or you can throw it at your student loans, or set it aside for a house down payment. In my W2, there is a call-out specified in Box 14 stating the RSU amounts. r/Bogleheads. If you don't buy company stock with your other cash, you should sell rsu immediately. Whether, on vest, taxes are paid in cash, shares sold to cover the taxes (sell to cover) or shares are withheld (net shares) is determined by what options the issuer allows. Then COVID shortages cause the stock value to quadruple. What you do afterwards depends on you. Generally, I have elected to withhold taxes via shares at the time of vesting, and living in Ontario, this means ~50% tax rate. Sell them immediately - And reinvest in equities. As for keeping the stock, you have to weigh the risk and decide for yourself. 4. Most of the time company will offer 3:1 or 4:1 for options. If you choose to sell your RSUs at a loss under that cost basis, you will book a capital loss for the year when you decide to sell and can be used as a deduction on your taxes. The company issued me RSUs and has a stock purchasing program. Reply. Estimated taxes have been sent to the government, but the taxes are only due when you sell the shares. So, when I sell the RSUs on my own I understand I will be taxed on the cap gains (long or short term) depending on which lots I sell. That's a guaranteed $5k--half of what you're hoping to get by sitting on your RSUs for another year and praying the stock grows at 40%. Any method of identifying which shares you sold requires a contemporaneous election of your choice, made to your broker. Same-Day Sale: Sell all the stocks, pay taxes/fees, keep the cash. I still think that’s insane considering my income tax rate is still 28%. Have 200 RSU, company might only let you exercise 150 -160 of them the rest will be also sold but proceeds sent to Uncle Sam. (1) hold stock units in Portfolio after vested for a rainy day. If you get $72,000 in RSUs over 4 years, that's only $1500 per month, minus 30-50% in tax withholding. Looks like free money to me as long as you have enough cash Let's get right down to it. If yes, keep the shares. No, sales to cover taxes don't trigger wash sale rules, because you bought the stock at the grant of the RSU, and vesting just converts the grant to salable stock (and triggers a recognition of the income you earned when it was granted), so there was no buy within 30 days of a sale (caveat, assuming you didn't get another grant within the 30 days before you sold it), and thus you never get an In my experience with RSU's is you get 100K worth as your grant based on the price of your start date. What you have you should parcel off in a LTCG planned manner. 6. 8% total). For instance, I received 25% of an initial RSU grant (sign on bonus) 163 shares. The order wasn't executed until after 2:00pm ET. That said, this is a feature specific to your company's Most places vest RSUs over 4 years but disperse a tiny portion every 1 or 3 months. • 4 yr. Taxes, if they grew in value. e. You could have additional tax burden if your employer did not take enough federal income tax out when they vested. Once you vest, you can get the actual stock and sell it at your leisure, or they will do a "cashless exercise" where they sell them and give you the money minus anticipated taxes. If you’ve made $500, sell $500 worth and your profit is now protected, you still own the amount of your original investment, and have cash for something else. After the recipient of a unit satisfies the vesting requirement, the company distributes shares or the cash equivalent of the number of I work at a tech company and I was given $200,000 in RSU's. Engineers and analysts early in their career will have a few thousand or low tens of thousands per vest. If you don’t sell immediately, you will have to pay tax on whatever gains you make at marginal rate unless you complete 24 months. 1) How You Get Your RSUs - You get your offer: Company promises to pay you a number of shares over 4 years. So if you're in the 22% bracket, that sale will increase your tax bill $55 * 10 * 22% = $121. Understanding the tax implications can help you manage your overall tax liability. So there's no real difference here. 4K a year later (no additional taxes). It’s not all or nothing. RSUs count as taxable income for their value when they vest. I think you're saying it's lower. You are already exposed to MSFT by working there. The vesting schedule is that 1/4th vests after 1 year and and then each quarter after that a remaining percentage vests until 4 years. Ordinary income tax and tax withholding upon vesting: When your RSUs vest, the fair market value of the shares is considered ordinary income for tax purposes 3 4. You are reporting the cost basis of all 15 to show that you paid income tax on the RSUs. This could be a total loss of 3k to offset 2) Understand taxes. RSUs - sell them as soon as they are vested, because you already are “heavily” invested in MSFT and there is no tax advantages to hold them. Join our community, read the PF Wiki, and get on top of your finances! RSU selling to catch up to my sell-on-vest strategy. Stock is at ~$50. This is often automatically withheld for you like a bonus. Personally I like diversification. 35% or whatever of rsu is sold at vest to cover the ordinary income of the vested rsu. Last year, I held most of my RSUs and only sold about $15k worth of vested RSUs after sell-to-cover. Many RSU plans won't allow you to exercise the full grant. 10. A lot of times it makes sense to sell RSUs in public companies immediately upon vesting. Yes, you have to pay taxes on the sell-to-cover transaction, if there's actually a taxable gain. If they allow different options then the participant can With RSUs you pay regular income taxes as soon as they vests. So, there are taxes withheld (sorta paid) when rsu vest. His work has since inspired others to get the most out No, RSUs are the same as taxable income when they vest. RSUs are effectively options with a strike of $0. Employees RSUs : r/Bogleheads. Don't count on the stock continuing to grow Typically advise on RSU's is to cash them as soon as the vest. 8% with perhaps a tiny bit sneaking into the 32% bracket (35. **Sell right away - this is called Disqualifying disposition for short term capital gains. Award. These units are scheduled to vest 25% each year over You already owe taxes on the gains as W2 income. With $2K a month to pay it off, it would still take until ~January of next year to entirely pay it down. If your other income stays at around $250k, all the long-term gain is going to be taxed at 18. RSU is exactly the same as the company giving you cash and you immediately buying company stock. The FOMO is real. (2) autosell or sell on day of vest (or when quiet period opens) and diversify into other investments. If you just sell same day you get a guaranteed income bump. At the time of writing, there’s $87 of capital gain on the vested post-tax amount (so nothing). Reply reply. Jan 9, 2020 · RSU Value: $50,000. Aug 31, 2021 · Mistake No. because theyre taxed as if theyre Selling RSUs at a loss is a capital loss. Layoffs are correlated with a decrease in share price, so I sell all my RSUs as soon as they best. The reason behind this strategy is to avoid any potential decline in the company's stock value. Vested RSUs are immediately treated as taxable income equal to the current market value of the shares you receive. The standard advice would be to sell and diversify into something else. Go to Bogleheads. 6K a year later. From this point on they act like normal stock with a cost basis equal to the value that vested. Capital losses are first applied to offset any capital gains. However, for RSU’s and company stock, we push the limit at 15%. I regularly receive RSUs (restricted stock units) as compensation and I'm not sure what to do with them. As for what you should do - I always go back to “if you had that amount of money in cash, would you buy your company stock?”. I made it to my first anniversary at my new job! The first batch of RSUs vested on Sunday. fangd. Even your job is in same basket. Problem number 1 is that the company never sells enough shares to pay the tax you actually owe. When you sell the other 9 in the future, you will have to pay capital gains tax (or file for a loss) based on the coat basis from when they vested and you paid income tax and what you sell them at in the future. You can sell some or all. The taxable event (and date taxes must be withheld) is vest date. General advice is to sell RSUs when they vest so as to A restricted stock unit (RSU) is a form of equity compensation used in stock compensation programs. Pay attention to the FMV of the stocks, because the brokerage likely does not have the correct cost basis when you sell the stocks now (including sell to cover) or in the future. So if you sell now, you’d pay the difference I. 1025 * $312 = $20,000. Profit sharing smaller, extra bonuses on good years via stock is still common. I think 39 + 21 adds up to 60. And you will be able to get credit for that money when you file your Federal taxes. The question is will the sale of those RSUs also count as ordinary income? So, as example - I receive 75 RSUs after tax. Throwaway account for reasons. That's where your money will get transferred after you sell the shares and request a wire transfer. Tax Withholding: $50,000 x 22% = $11,000. Wait for a buyback event where the company offers to buy the shares from existing investors at a certain price. Capital Gains Tax liability is 0. On the day RSU vests, it is as if you are paid the equivalent of the value of the vested RSU in cash, and immediately purchase the stocks. Long-term capital gain tax rates are typically much lower than ordinary income tax rates, ranging from 0% to 20% federal, depending on your income. What you employer deducted is only for income. No, that's not how RSUs work. If it's equal number of RSUs or options, then RSUs are a no brainier. Mar 6, 2023 · FMV of stock at vesting - cost of shares = ordinary income. Now if you want to sell and the shares are worth $2,000 more than what you got them for then you need to pay capital gains on the $2,000. If you're getting RSUs, you have a brokerage account already. I recently had about $7k worth of share vest and I would like to sell and then dump into VTSAX. Assuming you’re in a position with RSUs, you probably have a pretty good salary. Where this gets slightly more complicated is that the tax rate on which the $1400 is taxed, is based on how long you hold the stock. Simply select the desired lots to sell only the RSUS. For RSU, they would have sold some to pay your ta es when you got the awards. you already paid taxes on their vested value as supplemental income on your w2 most likely. Shows RSU Vest Taxable Gain under "Earnings," which is the same amount as in Box 14 of the W-2 (let's call it $6600 for purposes of discussion) and then under Post-Tax deductions it shows a line item for "RSU Vest Minus Taxes" of $4000, which is equivalent to the Taxable Gain minus the amount the broker shows as "Sell to Cover" ($2600) but nowhere is there you got it right. Sell ~70% of the RSUs - And keep 30% for long term. Be aware of lock-up periods during which insiders cannot trade, lock-up periods are usually 180 days. If your broker offered you the option to choose tax lots when you entered your sell order, then they have maintained a record of that choice and the same choice will be reflected in the description of property on your Form 1099-B. I got lucky with the employee stock purchase, the stock now is ~60% higher than my purchase price. I generally hold to a strategy of selling my RSUs directly when they vest, for tax treatment roughly equal to income, and to reinvest more safely. When the RSUs were vested, a portion of it was taken out as tax. headbanger1547. There is no tax liability on grant of an RSU. The total RSUs vesting should show up as taxable wages in Box 1 of your W-2. That's the limit, anything beyond 3k has to be carried forward to future tax returns. When you vest RSUs, you recognize ordinary taxable income at the fair market value of the stock. Taxes owed: $10,000 * 30% = $3,000 (save this in cash to give to the IRS in April) Profit to invest in VTI/VXUS: $10,000 - $3,000 = $7,000. That means you'd have ~28K. You'd immediately hit your $20K emergency fund goal, and have ~$19K left on the auto loan. Our rule of thumb is to never hold more than 10% in a single investment. Once you do, you will see all the shares available to share and you will find an extra field that will tell you which lots are part of your Employee Stock Purchase Plan (ESPP) and which are Restricted Stock Units (RSUs). After tax, there a bit over $6k moved to the brokerage account. As such there is no reason not to take the gain immediately beyond a desire to hold the stock. Proceeds from sales of RSUs go into the brokerage account, what you do with it from there is up to you. Sell those today and you'll have a $150 - $95 = $55 taxable short-term gain per share. 2. And there's only a taxable gain if the sell-to-cover price is higher than vest price. Your gains/losses from robonhood etc call in this same bucket. Basically espp typically has a 15% discount at vesting price or 6 months ago price. If you keep your RSUs you’ll pay capital gains when you sell. First of all, there is huge internal pressure to go public from anyone that owns shares at the company, they just got fucked by the market post 2021 highs when the market started going down again. It's taxed the same, the cost basis is the same, the (lack of) cap gains is the same if you sell right away, etc. If the company performs poorly, the stock can go down and you get laid off at the same time. Making the sell and buy order is a few clicks and the trade fees should be at most a fraction of a percent. Is there any 'standard advice' when it comes to Restricted Stock Units (RSU) that are granted to employees (i. Asking reddit for advice in case I missed anything. Therefore, if you sell immediately with no gains, then you will not pay any capital gains tax. You should instruct those stocks to be moved to your “retail” account- ask the brokerage for the process. if you sell at a loss then it’s a tax deduction. Um, no. I have about $50K available in RSUs (just vested this January) that I am thinking I'll sell in order to pay off some debt. You will be tax at normal income for all gains. The reason is that the gain is taxed as income immediately. As an example, let’s say that an employee received 10,000 RSUs for XYZ Company. The broker will (as E*Trade did) automatically sell some to cover the tax (Social Security and Medicare tax as well as income tax). ESPP is usually up to 10% of salary with a cap and was definitely available to SVB employees. If the stock stays flat, that is $25K per year in company stock before taxes. The taxes are paid by the company selling some of your RSUs on vesting day. Nothing wrong with the first half- i think most folks would recommend selling RSUs once they vest (or at least a good portion, I keep my portfolio at 5-10% of my company) The second part, those same people would probably recommend diversifying away from concentration in a single stock (especially if you're going to incur the taxable event and Nov 14, 2023 · Selling RSUs immediately upon vesting is a common approach for many individuals. So if the 6 shares are worth $60 when you sell, the cost basis is $50, you sell for $60, so +$10 per share, so $60 of capital gains. The rate of taxes on that amount depends on whether you had them longer than a year (short term vs long term capital gains tax). One of the primary factors to consider when deciding whether to sell your RSUs is the tax consequences. Your ESPP shares are also taxed as income at purchase time. RSUs are taxed as income at time of vesting, and then any capital gains/losses are taxed as appropriate at time of sale. Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify with low-cost index funds and let compounding grow wealth. If the answer is no, then sell the rsu and do whatever. Debt. See Publication 550, pp. You get taxed on your RSUs as income when they vest, then again you get get a capital gain or loss when you sell ( depending on whether you make or lose money since the time they vest). If you go through the taxation calculations you will see that holding the vested RSUs is identical to vesting, selling them all, and then taking the proceeds (or net proceeds after tax is withheld) and using those proceeds to buy stock in your company at full market price. If the stock rises 5% from the current price , sell some more and so on. “If your ESPP stock is sold more than 12 months after the purchase date, any appreciation beyond the discount will be taxed as a long-term capital gain. I have way too much money in RSUs myself and I’m reluctant to sell even though it’s probably the right move. On the day RSUs vest, you owe income tax on the value of the RSUs at that time. So, as I said in my earlier comment, to realize a loss you just have to also sell the shares that vested within 30 days of the wash sale. If they gave you $10,000 in RSUs then you get taxed on that $10,000 income. Then COVID caused the stock to drop in half. As for getting the money in INR or USD, that option is also selected directly from the brokerage account for me, they will charge upto 3% amount for currency conversion/trade taxes. Beyond that (or if there are no capital gains that year), you can claim a max of $3000 of loss in a given tax year, but the rest you can carry forward and use tactical808. This may be too high or too low. A lot depends on how much £ you have in RSU. BeginningHovercraft1. My question is at each vesting period, should I sell or hold on? And now finally when we're on the cusp of actually being able to do something with these RSUs and potentially sell them to get this "raise" we were promised, every SL is taking an average of a $500 monthly pay cut to start the new fiscal year this month because corporate decided to take away the 4 hours of weekly overtime that was granted to The RSUs are taxed as they vest, so there’s no real reason to hold or sell them for tax implications. I do “sell to cover,” and 59 shares were sold to cover tax. ago. Shares purchased: $10,000 / $156 = 64. For a few vesting cycles I forgot to sell before the trading window closed. Jack founded Vanguard and pioneered indexed mutual funds. Any gain after vesting follows standard capital gains. For what it's worth, my strategy has always been to sell enough to cover taxes, then of the remainder sell 50% at vest (invest in diversified holdings) and keep 50%. I am new to stocks etc. If we assume that the value will be settled in shares after a 22% statutory withholding (we’ll assume there are no other taxes withheld to simplify the example), the value to be received after tax is: Value of Vested Units: $50,000. Assume you sell all your RSUs and then buy the same shares in an ISA. Option 1: 100K vesting, withhold 37K for taxes, so left with 67K which becomes 80. eTrade sell order executed over five hours after it was placed for sell-all RSU vest. When taxes are due next April, stock price is $120. oe zh bv aa wa fw er hi cr pj