Restricted stock units (RSUs) are a form of stock-based employee compensation. RSUs are restricted during a vesting period that may last several years, during which time they cannot be sold.

How does restricted stock get taxed?

Taxation. With RSUs, you are taxed when the shares are delivered, which is almost always at vesting. Your taxable income is the market value of the shares at vesting. You have compensation income subject to federal and employment tax (Social Security and Medicare) and any state and local tax.

When do restricted stock units ( RSUs ) vest?

Building on the example from above, let’s examine the value of your shares resulting from the RSUs vesting after one year: Grant date (and vesting commencement date): 1/2/2019 (@$200/share) Vesting schedule: 25% per year (30 shares on January, 2020-23)

When do restricted stock units have to be converted to shares?

In most cases the vesting schedule is completed at five years. Stock options do not vest, but instead have an expiration date, after which the option cannot be exercised. RSUs are converted to shares once they are vested, and therefore do not expire.

When do restricted stock units become taxable in Ireland?

RSUs are fully taxable in the State if they vest at a time when the holder is Irish tax resident, without any apportionment by reference to any part of the vesting period during which holder was resident elsewhere. If the RSUs and the holder is no longer Irish resident, the RSUs are not taxable in Ireland, regardless of the fact

When do shares of Schwab restricted stock units vest?

At the first anniversary of your grant date and on the same date over the subsequent three years, 1,250 shares vest. Once each portion vests, you can sell the shares. The example above uses a “graded” vesting schedule, i.e., the vesting of the grant in serial portions.