PROACTIVE, YEAR-ROUND TAX STRATEGY
Overview
High-income W-2 earners who receive RSUs, stock options, or ESPP shares as part of their compensation face a tax problem a standard payroll withholding rate can’t solve: equity compensation is taxed differently depending on the type of grant, when it vests, and when it’s sold — and getting the timing wrong can mean a much larger tax bill than necessary.
Our advisors complete at least 200 hours of onboarding training and are evaluated with an experienced advisor before leading a meeting. This preparation supports planning around vesting schedules, exercise decisions, and sale timing so your equity compensation works for your long-term wealth, not just your tax return.
We’re constantly studying the tax code and developing techniques that take advantage of strategies supported by current law and your specific equity grants to save our clients the most money on their taxes.
Our Approach
What's Included
Mapping out when shares vest and the ordinary income tax hit each vesting event creates.
Employer withholding on RSUs is often flat-rate and under-withholds high earners; we help you avoid a surprise balance due.
Deciding when to sell vested shares to manage short- vs. long-term capital gains exposure.
Coordinating tax-efficient diversification out of a single-stock position.
Understanding the different tax treatment of incentive stock options vs. non-qualified stock options, including AMT exposure on ISOs.
Evaluating whether an early 83(b) election makes sense for restricted stock or early-exercise options.
Addressing vesting or exercise events that span a move between states or remote work in a different state.
Integrating equity comp decisions with retirement contributions, charitable giving, and entity-level planning.
Questions
RSUs are taxed as ordinary income based on the fair market value of the shares on the vesting date — not when you're granted the award or when you sell. That income is added to your W-2, and any gain or loss after vesting is taxed separately as a capital gain or loss.
Many employers withhold RSU income at a flat statutory rate, which is often lower than the marginal rate high earners actually owe. This can create an underpayment that shows up as a surprise balance — or penalty — at filing time.
