Restricted stock units (RSUs) and performance-based restricted stock units (PSUs) are a sort of equity compensation that is frequently given to employees of technology companies. They’re utilized as additional compensation in addition to a normal salary in the form of stock ownership. RSUs may be a valuable type of compensation and provide several planning options. However, if you don’t know how they work or what these possibilities are, you’re probably left wondering what to do with your RSUs. This article will look at the fundamentals of RSUs, tax ramifications, and strategies for maximizing their value!
Takeaway: When you receive RSUs, they will typically have a set number of restrictions. This means that you can’t yet sell the units, but they will vest over time. When it comes to deciding what to do with your RSUs, it’s important to consider both the potential risks and tax consequences.
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The tax information contained in this blogpost is general in nature. Always consult an attorney or tax professional regarding your specific legal situation.