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Employer Stock: RSUs
Employer Stock: RSUs

This article describes how to enter RSUs in your Plan.

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

Restricted Stock Units

RSUs are taxed at ordinary income rates, including FICA, as of the date the RSUs vest and the actual stock is transferred to you. Any gain from that date forward is taxed as a short- or long-term capital gain, depending on how long you own the stock. If you sell immediately, taxes may be minimal.

Follow these steps to account for RSUs in your plan.

STEP 1: Navigate to to My Plan > Income > Income for Work and add ➕ a job. Give the job a descriptive name, “Fintech RSU,” for example. Enter the gross income received as RSU compensation (generally the FMV price that day the shares vest) on the vesting date by selecting the same start and stop age.

STEP 2: Once you have the income coming in, model the stock account by adding a contribution for the value you compute for the RSUs to an after-tax account with Capital Gains tax treatment.

  • Navigate to to My Plan > Income > Income for Work

  • Press the pencil icon ✎ to edit the work income

  • Press "Add a Contribution"

  • When asked "How are contributions made?" press "It's deducted from my paycheck"

  • When asked what type of contribution you want to model press "Contribution to another type of account"

  • Enter the the net value you compute for the RSUs

STEP 3: If you want to account for the capital gains on the sale of the stock at a later date, enter a Transfer on the date you plan to to sell the stock.

  • Navigate to MyPlan > Money Flows > Transfers

  • Add a Transfer ➕ for the value of the shares you plan to sell. The FROM account will be the RSU account and the TO account will be an after-tax account with the Ordinary Income tax treatment. This transfer will incur long term capital gains taxes but further withdrawals from the savings account will not.

If you aren't waiting for the holding period, you can add the stock purchase as income and then a contribution to a savings account. This will incur FICA and income tax at your ordinary tax rate.

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