RSUs

Question 1

RSU Taxation

Answer 1

Taxed as ordinary income at vesting (FMV-grant price), and capital gains (STCG/LTCG) when sold

Question 2

RSU Tax Withholding

Answer 2

Companies will sell some RSUs at vest for tax withholding

Usually 22% will be withheld via shares sold

Question 3

Generally recommended strategies for divesting RSUs

Answer 3

Sell immediately to not owe capital gains, will still owe income tax at vesting regardless of length of time held