RSU Tax Planning for Tech Employees
Restricted Stock Units are taxed as ordinary income at vesting — not when you sell. The IRS default withholding of 22% leaves engineers in the 35–37% bracket with a gap that compounds across every vesting event. Here's how to plan around it.
The IRS withholds 22% on supplemental income like RSUs — but if you're in the 35% or 37% bracket, every vest event leaves a gap. That gap compounds across quarterly vesting schedules. Most engineers don't see the total until April.
You've built a career at a top-tier employer, earned real equity, and done the hard work. Getting blindsided by a five-figure tax bill isn't failure — it's a planning problem that nobody warned you about.
It's wrong that engineers who built real company value lose a third of it to taxes nobody explained in advance. A proactive strategy isn't a luxury — it's what every vesting event requires.
RSU planning requires more than a tax return. It requires a proactive quarterly strategy.
“You've spent years earning equity that could change your family's financial future — and the fact that you're not sure what to do with it doesn't mean you're not smart enough. It means nobody built you a clear map.”
The EQUITY System™ wasn't designed in a classroom — it was built working directly with engineers at unicorn startups and companies like Amazon, where the stakes of getting it wrong were real.
Mitchell Ludwig, CFP® built his practice around one problem: helping tech professionals turn equity compensation into lasting wealth. Every client relationship begins with equity — the strategy is built around it from day one.
Book Your Free Equity ReviewMost advisors see RSUs as income. I see them as a 3–5 year tax and diversification problem that needs a plan today.
The RSU Planning Framework
Before each vesting event, we model your effective rate vs. withholding. We build a real-dollar projection accounting for your bracket, FICA cap, state taxes, and existing AGI. No surprises in April.
Sell immediately to diversify, or hold and take concentration risk? We build the framework — based on your timeline, other income, and position size — before the grant vests so you never make this call under pressure.
IPOs, acquisitions, and lockup expirations create high-stakes tax decisions under time pressure. We map blackout windows, lockup dates, and post-IPO diversification schedules as part of your plan — not an afterthought.
Schedule a free 30-min equity review — no commitment required.
Get a complete picture of your RSU position, vesting schedule, and tax exposure.
Follow a custom RSU strategy built around your bracket, grants, and timeline.
Client Transformation
Quarterly tax modeling eliminates surprises at filing. You know your shortfall before each vest event — not after.
Every vest event gets a real-dollar withholding gap calculated against your effective rate. No guessing.
A pre-built decision framework for every grant removes emotion from the sell-or-hold choice at vest.
Your vesting schedule, tax events, and equity position integrated into your complete financial picture.
The engineers who keep what they earn stopped waiting for the right moment to get a plan. They built one before the next vest event.
Ready to Build Your Strategy?
No commitment. No generic advice. A clear picture of your equity position — and a tax strategy built around it.
ISOs can qualify for long-term capital gains — but AMT at exercise can cost six figures on shares you haven't sold yet.
ExploreNSOs are taxed as ordinary income at exercise. Timing across multiple tax years is the primary planning lever.
ExploreSection 1202 can exclude up to $10M of gain from federal tax — if the planning starts before the five-year clock.
ExploreImportant disclosures
Mitchell Ludwig is a CERTIFIED FINANCIAL PLANNER™ professional and a Registered Investment Adviser Representative of Carolina Wealth Partners. Securities are offered through United Planners Financial Services, Member FINRA/SIPC. Carolina Wealth Partners and The Equity Architect are separate entities. Jon Ludwig is a Series 65–registered Investment Adviser Representative and promoter.
All content on this page is for informational and educational purposes only and does not constitute personalized investment, tax, or legal advice. Examples, illustrations, and client archetypes are composite in nature and do not represent any specific client. All tools and calculators are estimates only. Consult a qualified tax advisor or CFP® professional before making any financial decisions.
All marketing content is reviewed and approved by United Planners compliance in accordance with SEC Marketing Rule (Rule 206(4)–1). Past performance is not indicative of future results.
Works exclusively with tech professionals and equity compensation