RSU Tax Planning Wealth

Restricted Stock Units (RSUs) are a form of equity compensation where an employee receives shares after meeting vesting conditions (typically 4 years, quarterly vest). Upon vesting, RSUs are taxed as ordinary income at fair market value (FMV) on the vesting date. The employee then owns the shares and can sell or hold. RSU tax planning focuses on minimizing tax liability through strategic selling, deferral strategies (where available), and loss harvesting while aligning wealth-building objectives. High-earning tech workers often receive 50–100% of compensation as RSUs. A $500k equity grant generates $125k+ annual tax liability at vest if not managed. Strategic tax planning can save 15–30% of equity value through timing, diversification, and loss harvesting. Financial advisors specializing in RSU planning command $5k–$25k+ annual fees; learning RSU tax strategy directly enables wealth optimization for executives and high-earners.