myStockOptions.com - stock options, employee stock purchase plans, restricted stock, RSUs, SARs, and other stock compensation

By Matt Simon

Restricted stock units (RSUs) have become the most popular alternative to stock options. While RSUs share many of the same issues as restricted stock, there are differences, and it is important to understand the basics of RSUs in their own right.

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New and Updated Content

FAQ: NEW! What tax changes under the American Taxpayer Relief Act affect stock compensation?

FAQ: NEW! How does the health-care reform law affect my Medicare tax and stock compensation planning?

FAQ: NEW! How have the withholding taxes on my equity compensation changed in 2013?

FAQ: UPDATED! What are the federal tax-withholding rates on stock compensation? Is the rate different for amounts above $1 million?

FAQ: UPDATED! What are capital gains and capital losses? What are the capital gains tax rates?

Article: Tax Planning For Options, Restricted Stock, And ESPPs After 2013 Tax Law Changes: High-Income Taxpayers Impacted Most (Part 1)

FAQ: NEW! Next year I may be in a higher tax bracket. I am thinking about exercising my nonqualified stock options before then to accelerate income into this year. What issues do I need to think about?

FAQ: UPDATED! Has recent legislation changed the taxation of incentive stock options?

FAQ: UPDATED! What are best practices for Rule 10b5-1 trading plans?

FAQ: UPDATED FOR 2013! Are there guidelines for calculating AMT trigger points? For example, if my spouse and I earn $100,000, will we trigger the AMT when I exercise ISOs?

FAQ: Do companies make stock option or restricted stock grants to directors? Any survey data on director grants?

Article: Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems (Part 1): Company Stock Trades

FAQ: UPDATED! How do I make a timely and complete Section 83(b) election?

FAQ: Why do many companies grant restricted stock and RSUs instead of stock options?

FAQ: UPDATED! My company is now granting restricted stock, and the current share price is much lower than I think it will be in a few years. Any tax-planning ideas?

FAQ: UPDATED! Any survey data on stock grants in privately held companies?

FAQ: NEW! Is the payout of restricted stock units ever delayed when vesting is accelerated?

FAQ: UPDATED! If I make a Section 83(b) election to be taxed on the value of my restricted stock at grant, can I pay the taxes by selling shares or by having my company withhold shares or lend me money?

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ARTICLES ON...

CORE CONCEPTS

How To Avoid The Most Common Stock Option Mistakes (Part 1)
By Beth Walker

Avoid the mistakes others made during prior ups and downs in the stock markets. Common errors arise in nine different situations, including job termination, mergers, financial planning, term expiration, and various life events.

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My Company's Being Acquired: What Happens To My Stock Options? (Part 2)

Advisors, Have You Heard About MSO Pro?

Made just for you, with tools to track and model grants for multiple clients, and proactive communications to build relationships. Click here for more information.

Featured FAQs

Q: UPDATED! When I file an extension to complete my tax return after the IRS deadline, are there any mistakes I should avoid that involve stock grant income?

A: Stock compensation income can raise your income tax and make your tax return complex. The IRS has a form that lets you apply for an automatic six-month extension for the due date of your tax return (until mid-October). Mistakes include not paying taxes owed with...

Q: When my restricted stock vests, will I need to make estimated tax payments?

A: At a minimum, when the restricted stock vests your company will withhold taxes at the required federal withholding rate for...

Ask the Experts

Q: I work and live in the United States, though I am not a US citizen. I have non-immigrant alien status (L1 visa). My stock options all vested when I worked back in my home country. I now plan to exercise the options while living in the US. Will I have to pay taxes to the IRS and/or the state where I live on this income?

A: If you are a US resident at the time of exercise, the options are taxable in the United States, so you will owe federal tax on the exercise income and possibly state tax (depending on the state). In addition, since the options were earned (i.e. granted and vested) in your home country, it may also try to tax at least part of the income at option exercise. In the US, you will be able to claim...

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Johnson & Johnson
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Worldwide Compensation Resources

Featured Article

Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts