Tax Strategies
RSU & RSA Tax Strategies
RSU & RSA Tax Strategies
Exercise 100% of RSAs via 83(b) When Granted. In the vast majority of circumstances with RSAs, exercising 100% of your grant via 83(b) will be the optimal risk/reward decision.
Optimizing for RSU Underwithholding. The taxes withheld when your RSUs vest are almost less than what you will actually owe. You will owe the difference come tax time.
Sell 100% of RSU Shares When They Vest. No tax benefit exists to hold RSUs after they vest.
Double-Trigger RSU Liquidity Year Planning. If you have double-trigger RSUs, by definition they will vest when both criteria are met. Many times this results in a large amount of shares vesting at one time, creating a spike in income.
Avoid wash sales with RSU vesting. The vesting of RSUs do count as an acquisition of shares for Wash Sale rules, if you previously sold the same shares at a loss.
Cross-Listed Tax Strategies
In addition to the above RSU/RSA tax strategies, a number of other tax strategies may also apply in certain situations. We encourage you to review all of the strategies detailed on the 50+ Tax Strategies page to ensure you have the proverbial "full menu" of tax planning strategies to consider for your situation.
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