Anyone familiar with RSUs and taxes?

[cherry1111]

My H has some RSUs at his company. They are in the process of being bought by a private equity firm so the shares will be paid out, both those that have vested and those that would have vested over the next 5 or so years.

I am not well versed in how all this works but I know when the shares vested the company would hold back shares/money for taxes at the time of vesting. So will we still owe taxes on those? We’d like to just put the money into new stocks/funds but I guess the stocks that hadn’t vested yet/hadn’t had taxes held back will be taxed?

Is this something we could call someone at Fidelity or Vanguard or wherever we decide to move the money and get guidance? It’s not a massive amount of money, but enough to buy a nice car, so I want to be prepared for any tax implications.

[sandandsea]

Yes, rsu vestings, including accelerated vestings, are taxed as ordinary income. The company may withhold taxes for you but double check the percentage they withhold. Generally it is 15-20% which may or may not be enough to cover your taxes. Also don’t forget about state taxes.

[numbers]

My RSUs have always been taxed as earned income at the time of vesting.

I receive a paystub showing the RSU gross amount, all applicable taxes, and the RSU net amount.

[froggy76]

My company always gave us 3 options at the time of vesting: 1) Keep all shares, 2) Sell enough to cover taxes, and 3) Sell all.