Article Date:
March 2020

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Section 83(b): Restricted Stock Awards and Your Taxes

Restricted stock awards—also called restricted stock units, or RSUs—are supplementing stock options as a popular form of equity-oriented executive compensation.


Reason. Stock options can lose most or all of their value if the underlying stock goes down in price.


In contrast, restricted stock awards retain significant value as long as the underlying stock appreciates. If the stock price goes down, your employer can easily award additional restricted stock to adjust for that.


You may be asking, “Great, but what are the tax implications?” Good question.


This article explains the federal income and employment tax impact of receiving a restricted stock award. Here goes. ... Log in to view full article.

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