Employees who receive Restricted Stock Units (RSUs) as part of their compensation will have a number of things to consider. Tax implications, financial planning…
How to Use Restricted Stock Units to Fund Financial Planning Goals
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I’m Daniel Zajac, CFP®
I write about employee stock options and equity compensation in a way that is easy to understand.
How to Choose if Offered Restricted Stock Units or Non Qualified Stock Options
Some employers may allow you to choose how you receive your equity compensation. They may allow you to receive it all in NQSOs or all in RSUs or they may allow you to…
How to Coordinate a Donor Advised Fund and Your Equity Compensation
If you have equity compensation and are in an abnormally high-income tax year, it often makes sense to consider how you may be able to offset that pending tax liability.
What is a Donor Advised Fund and Why You Might Want to Donate Low Basis Stock
When it comes to charitable giving, there are many different options, from dropping a dollar in the collection plate at church to starting a private foundation.
What You Should Know About the Alternative Minimum Tax and Incentive Stock Options
Most people understand that taxes can be a little more complicated when you have incentives stock options and other equity compensation. What they may not know is that income tax isn’t just about tax brackets to calculate your regular taxable income. The federal income tax system has a sister system that figures how much tax you may owe due to the Alternative Minimum Tax (AMT). AMT may kick in when your income goes over a certain threshold or when you engage in certain activities, namely exercising and holding incentive stock options.
6 Tips to Manage and Mitigate the Alternative Minimum Tax on Incentive Stock Options
Incentive stock options are a type of equity compensation you may receive as part of your overall compensation package. Incentive stock options, or ISOs, allow you to buy company stock at a fixed price for a set period of time, regardless of the current fair market value of the stock. In the best circumstances, incentive stock options can be a tool to generate significant wealth if…
What to Expect When Your Company IPOs and How to Prepare for a Liquidity Event
Being part of an initial public offering, or IPO, is an exciting time. This is when a private company goes through the process of getting listed on a publicly-traded exchange. Where shareholders may have previously only been able to buy or sell the company’s equity in private deals (if allowed by the company), an IPO allows for company stock to be bought, sold, or traded…
What Are the Key Differences Between Restricted Stock Units and Employee Stock Options?
Restricted stock units and employee stock options are commonly-awarded types of equity compensation that you may receive as part of your overall pay from your employer. While both restricted stock units and stock options are forms of equity, they each have particular features and are treated very differently from a tax perspective. Restricted stock units or awards (RSUs) typically…
6 Advanced Planning Ideas to Use When Your Restricted Stock Units Vest
Restricted stock is often considered the simplest type of equity compensation to understand. And relative to other types of equity you could receive, this might be true. But that doesn’t mean managing restricted stock is easy. Restricted stock gets complicated thanks to factors such as double triggers, tax withholding (or lack thereof), and sell-to-cover or…
How to Prepare for the Impact of Restricted Stock Units on Your Cash Flow, Tax Bill, and Investment Portfolio
Restricted stock units are often considered the most straightforward type of equity compensation. Unlike other ways that employees can receive shares of company stock, restricted stock units (or RSUs) often have a largely automated process for granting, vesting, and taxation. Once vested and settled, the fair market value of the RSUs is taxed and the…
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Hi, I'm Daniel Zajac, CFP®, EA
I write about equity compensation and employee stock options in a way that is easy to understand.
NEW! The Ultimate Guide to Equity Compensation
Understand what you have, what you should consider, and what ultimately matters to you.
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