RSUs are a promise of company shares delivered on a vesting schedule — taxed as ordinary income when they vest, whether or not you sell. Unvested RSUs are typically forfeited when you leave.
Restricted stock units are the dominant equity at public companies: a grant of shares delivered over time, commonly a four-year vesting schedule with a one-year cliff (nothing until year one, then quarterly). Two mechanics surprise people. Taxes: vested RSUs are ordinary income at their market value on vest day — taxed then, sell or not; companies usually withhold shares to cover it, often at rates lower than you’ll actually owe, creating April surprises. Departure: unvested RSUs are generally forfeited when you leave, which makes vesting dates real money on the calendar — leaving three weeks before a vest is an expensive scheduling error. At private companies, double-trigger RSUs may not deliver until a liquidity event; understand which kind you hold.
Yes — vesting itself is the taxable event, as ordinary income at that day’s value. Later gains or losses from holding are separate capital gains treatment.
Vested shares are yours; unvested units are typically forfeited. Check your grant agreement for any exceptions.
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