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RSU
Last reviewed 2026-04-19 · Educational content only — no partner offers on this page.
1
Explain it like I’m new
Restricted Stock Units — company shares your employer promises you, which you actually receive after a vesting schedule.
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Technical version
A form of equity compensation representing a promise to deliver shares of stock upon satisfaction of vesting conditions; taxed as ordinary income at vest.
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Why people get confused
- ✕‘I’ll only owe tax when I sell.’ Vesting itself is a taxable event.
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What decision this affects
Why it matters
RSUs are taxable when they vest, not when you sell — a common surprise at tax time.
- →Decide whether to sell at vest or hold (concentration risk).
- →Set aside cash for any additional tax owed beyond withholding.
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Related next concepts
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Trusted sources
Educational — no commercial relationship.
Questions people ask
- Should I sell my RSUs immediately?
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