Restricted stock units (RSUs) might seem relatively easy to manage once they vest, especially when compared to the potential complexity of vested non-qualified and incentive stock options. RSUs look straightforward ...
Restricted stock units (RSUs) might seem relatively easy to manage once they vest, especially when compared to the potential complexity of vested non-qualified and incentive stock options. RSUs look straightforward because your options can seem limited, meaning you have fewer decisions to make. But the truth is, you may have several choices around the actions to take next, including how to pay the requisite tax due or if you should retain shares after vesting. Deciding what to do with restricted stock units may even become more complicated if you throw in a post-IPO lock-up period, an insider black-out period, or the need to consider a 10b5-1 plan. Your choices may have a significant impact on the rest of your financial life, so you need to understand how to appropriately evaluate potential outcomes and choose a course of action based on what best fits into your overall financial plan. To make the best possible decisions around how to handle restricted stock units once they vest, there are certain factors and issues to consider. 1 – Vesting Restricted Stock and Paying the Tax Due Generally speaking, when your restricted stock units vest, you gain full rights and ownership to the value of… Read More »