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RSU are a joke unless u qre on the high end. I remember NQS optios - much easier to deal with. RSU was bcuz govt wanted money sooner Watch out re IRAs.....other Iras are pre-taxed, on the basis.

question - if you buy shares in ESPP why would your companies payroll take ESPP tax repayment out of your paycheck? Wouldn't you only pay taxes when you sell the the stock ? Wouldn't this mean your being double taxed ?

If I hold the stock for 2 years, how do I claim the offset additional tax I have already paid for the portion between 10 to 15. I assume that during the purchase date year, when I file taxes - my company reports the 8.50 to 15 as income right ??

Great video!

Excellent explanation, very clear and easy to understand. Thank you!

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Thank you for the visual. After several videos I was so confused on the tax implications but the graphic made complete sense.

Thank you for the clear example! I have a question for a different situation: If the price was $15 on the offering date and dropped to $10 on the purchase date, then I sold it at $20 after 2 years from the offering date, how much will become capital gain? $5 or $10?

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Just sell, put in ROTH and trade SPY options (sell puts/calls -> wheel strategy) !😎

Martinez Kevin Martinez Charles Anderson Timothy

Really straight forward explanation! Thanks

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

At 5:12, why is cost basis the blue line and not the 8.50 line? Thanks!

What if your company do a stock split on your 2000 stocks promises In a 1 out of 10 ratio ?

For NQSOs: Income tax is realized when options are exercised. Then say I hold on to the shares for a certain amount of time for whatever reason, the shares have appreciated in value. When I sell, would that just be LT gains tax? Thanks!

Whoooph! That's tough!

Mike, thank you for XYPN presentation about equity compensation, it’s was brilliant 🎉 Lyubomyr

If ESPP fund is after tax fund, W2 Box 1 should not be included ESPP fund. So only at the time selling ESPP, the related oridinary income tax and Capital Gain tax need to be calculated.

Is ESPP after tax fund or before tax fund ?

This was extremely helpful - thank you!

This is the best ESPP explanation I have seen on TH-cam

Great video! Clear and to the point explanation of the RSU process. My one question is if we can sell our vested RSUs if the company is private?

Can you help me understand how the RSU share tax withholding would appear on a W-2? I am afraid that my shares are being withheld but the withholding doesn’t appear on my w-2 and I am paying taxes twice on them.

How can I perform my calculations if the Company didn't grant me in terms of number of stocks but instead gave me a value in USD?

Thanks for this information! Really appreciated 😊

Hello! In this example, are ether or these plans qualified or non-qualified plans?

Thank you for this, it was very helpful and you did a great job breaking the ESPP process down!

if I have strong evidence that the company will do well in the future, would it make sense for me to exercise when the actual price of the stock is close to the exercise price? Would I theoretically avoid the income tax and only need to pay capital gains?

What happens when your company withholds shares but the total price of those shares are bigger than your tax amount? Ie your shares are on each 1k you got 4 shares and your tax income is about 30% so your company withholds 2 shares (2k) to pay 1.2k usd. Do you lose the other 800 usd ? Is there a way to recover them? Thanks for your video !

🎯 Key Takeaways for quick navigation: 00:04 *💼 Understanding Employee Stock Purchase Plans (ESPPs)* - Employee Stock Purchase Plans (ESPPs) allow employees to purchase company stock at a discounted price through payroll deductions. - Enrollment periods determine participation, with employees electing to allocate a percentage of their salary to the ESPP. - Contributions accumulate in an escrow account until the purchase date, usually every six months, when stock is bought at a discount. 03:37 *💰 Taxation of Employee Stock Purchase Plans (ESPPs)* - ESPPs are subject to various tax implications, including ordinary income tax, short-term capital gains tax, and long-term capital gains tax. - Qualified ESPPs offer preferential tax treatment if the stock is held for at least one year from the purchase date and two years from the offering date. - Understanding the taxation timeline and potential tax benefits is crucial for maximizing returns and minimizing tax liabilities. 07:09 *📈 Deciding When to Sell ESPP Stock* - Employees must consider their risk tolerance and concentration risk when deciding when to sell ESPP stock. - Selling immediately locks in the discount but results in immediate taxation, while holding for longer may qualify for lower long-term capital gains tax rates. - The decision to hold beyond the two-year period depends on the stock's performance during the offering period and its impact on tax liabilities. Made with HARPA AI

this helped me so much

Thank you. How to report it on the tax form?

When your employer sells RSU shares to cover withholding, do they report that withholding on the W-2 in the same box as withholding for wages?

Excellent video !! Thanks.

My company is doing the cash bonus option and I can't wait until my 1st grant date!

I retired (100% Normal S.S.) in 2022. Have 5 years (2018 to 2022) of ESPP at cost basis of $36,000 ($7,200 ave. X 5 years). Current stock value is $136,000. Don’t need to sell, but wanted to sell over a few years to minimize taxes. Should i ladder the sales to take advantage of the 2 year long-term period?

Bestestest explanation so far 🎉

Very good video. Thanks for the breakdown