IRC §3402(g)(2) · §83 cited

RSU Tax Planner

RSUs vest as ordinary income. Default 22% federal withholding is often not enough. Plan the cash, dont get surprised in April.

Tax impact this tranche
Ordinary income on vest
$0
added to W-2 box 1
Default federal withholding (22%)
$0
flat supplemental rate
Your actual marginal rate
0%
on top of base wages
Withholding shortfall
$0
owe at April filing
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Capital gain on sale
$0
short vs long term
Tax on sale
$0
at applicable rate
No §83(b) election available. RSUs are a contract right, not actual restricted stock. The §83(b) early-tax election only applies to true restricted stock (founder shares, early-stage grants). For RSUs, ordinary income is fixed at vest. No election can move that earlier.
Strategy note loading...
Cite: IRC §3402(g)(2) (22% supplemental withholding, 37% above $1M), §83 (timing of income), §1222 (short vs long term).
Have us run your RSU + estimated tax plan
2024 supplemental withholding is 22% (37% on amounts over $1M). If your marginal rate is higher, the IRS WILL want the difference at filing. We bake that into your quarterly estimates. Phone 689-331-5723.