Taxes
4 months ago

How are RSUs taxed and when should I sell them?

31

My tech company gave me $120k in RSUs that vest over 4 years. When the shares vest, they're treated as ordinary income and taxes are withheld (usually by selling some shares to cover). But then if I hold and the stock goes up, I pay capital gains. If it goes down, I have a loss. Is the conventional wisdom to sell RSUs immediately upon vesting and diversify? Or is there a case for holding?

DR
@drodler

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