How RSUs Create an Unexpected Tax Bill at Vesting

Restricted stock units are a popular form of equity compensation, but many employees are blindsided by the tax bill when their shares vest. In this episode, Lucas and Luna break down how RSUs are taxed as ordinary income at vesting, not at sale, and why that can create a cash crunch. They walk through a realistic scenario: a mid-career engineer at a tech company who receives 500 RSUs, vests 125 shares per year, and faces a tax bill of over $15,000 each spring. They also discuss strategies like selling to cover, estimated tax payments, and understanding your company's withholding policy. No mark-to-market, no complicated elections – just the critical number every RSU holder needs to know before the first vesting date. #RSU #RestrictedStockUnits #EquityCompensation #TaxPlanning #Vesting #EmployeeStock #TaxBill #CashFlow #SellToCover #Withholding #TechCompensation #TotalComp #CompensationPodcast #FexingoBusiness #BusinessPodcast #Careers #PersonalFinance #WealthManagement Keep every episode free: buymeacoffee.com/fexingo