WHAT You Need to Know About RESTRICTED STOCK UNITS EXPLAINED!
In this video, I’ll break down everything you need to know about Restricted Stock Units (RSUs)—how they work, their tax implications, and when it makes sense to sell them. RSUs are a form of compensation provided by companies, offering employees shares of company stock once certain conditions are met—typically through a vesting period tied to continued employment. Unlike stock options, RSUs don’t require you to purchase shares. Instead, you automatically receive the shares once they vest, making them an attractive tool for building long-term wealth.
If you’ve received RSUs as part of your compensation package, it’s critical to understand how they are taxed at both the vesting and sale stages. This video also covers strategies for deciding when to sell your RSUs to avoid unnecessary taxes and market risks, helping you maximize this form of equity compensation.
I’ll also walk you through how RSUs work in a public company and the steps required to meet eligibility through vesting schedules. We’ll explore the difference between ordinary income tax and capital gains tax and when each applies. Additionally, I’ll provide practical recommendations on when to sell your RSUs based on market conditions and your financial goals. Timing is essential to avoid tax pitfalls, and with the right approach, RSUs can become a powerful part of your wealth-building strategy.
