RSUs are not the same as Restricted stock .

RSUs are different than restricted stocks.

RSUs do not belong to you until vested. In general, your vesting schedule either falls under a “cliff” schedule (100% of your RSUs will be vested at the same time after a certain period) or a “graded” schedule (your RSUs will be vested gradually, e.g., 25% per year and vested in four years). Some RSU plans may have some additional vesting features related to the company’s specific performance metrics.

RSUs will be taxed upon delivery not at granting or vesting. Under most RSU plans, the shares are delivered to you at vesting. However, some plans give you a choice to defer the share delivery to a future date. In other words, you could decide when to pay income taxes based on your specific situation.

RSUs are treated as supplemental income. Many companies withhold federal income taxes on RSUs at a flat rate of 22%.

This article is for informational purposes only and does not constitute tax or legal advice .