UPDATED FOR 2013!
As part of your year-end and year-beginning tax planning, don't forget to review your holdings in restricted stock, performance shares, and other company stock you may own. This article presents strategies that many experts suggest.
W.E.B. Bantling and Michael Beriss
UPDATED FOR 2013!
Learn about year-end ideas that apply to NQSOs and restricted stock/RSUs, and consider the impact of tax-rate changes that became effective in 2013.
Tom Davison and William Whitaker
The beginning of 2013 brought notable shifts in tax rates for people at higher income levels. Part 1 surveys the important tax changes and considers their impact on planning.
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.
The taxation of RSUs generally resembles that of restricted stock but carries some important differences.
Alan B. Ungar
The American Taxpayer Relief Act and the Affordable Care Act introduced tax-rate increases you need to consider in deciding when to exercise stock options, when to sell company stock, and how to plan around income from restricted stock vesting. This article explains the changes in tax law and suggests strategies for minimizing the new taxes.
While restricted stock and RSUs are relatively straightforward, they have technical aspects you must understand to make the most of them. Learn the essential facts of restricted stock and RSUs, including basic concepts, vesting schedules, and tax treatment.
Understand financial planning for restricted stock and RSUs. Part 1 discusses the growing popularity of these grants, their special features, and the related tax planning.
Many companies have turned away from stock options and begun to make outright stock grants that must vest before the shares can be issued. For employees, these grants have added a new layer of complexity to their equity compensation. This article presents six questions I get all the time from clients who have received restricted stock, restricted stock units, or performance shares.
Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy for equity compensation and company stock holdings to determine whether action is required. Part 2 looks at restricted stock and restricted stock units.
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You should know the answers to the following questions. Understanding the topics involved will help you make the most of your restricted stock/RSU grant and prevent costly mistakes...
Don't confuse restricted securities and restricted stock. They are very different...
Generally, yes, with two exceptions. First, with RSUs you cannot...
The compensation philosophies of companies are continually changing under the influence of many factors, from accounting rules to...
Restricted stock always has some value to you even when the stock price drops below the price on the date of grant...
Decisions in year-end financial and tax planning depend on several factors. In this FAQ, we present several situations and some strategies that many experts suggest. Of course, you should...
Surveys indicate that many companies use a variety of grants, including both stock options and restricted stock units (RSUs) in tandem. There are many possible reasons why a company might switch from options to RSUs...
While they are siblings, they have important differences, as explained below and as shown by the chart. The traits of restricted stock units include the following...
Increases in tax rates indirectly affect the value of grants. Most importantly...
At a minimum, when the restricted stock vests your company will withhold taxes at the required federal withholding rate for...
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