Your RSUs just vested. Now what?

A VP sees a big vest land and starts treating the shares like cash. What actually happened, and what to figure out before counting on that money.

The situation

Picture a VP at a public tech company who's paid a salary plus RSUs. A few years in, a big vest lands the same week as their bonus. The brokerage account shows new shares, payroll shows the withholding, and they start talking about the shares like they're a down payment on a house.

This isn't a real person. It's a mix of things that come up all the time. The shares showing up feels like the end of the story, but vesting just means the shares were delivered to you. The taxes may not be settled, most of it is still one company's stock, and nothing has actually been decided yet.

Where people get tripped up

The withholding probably isn't your real tax bill

Most companies withhold at the flat supplemental rate and hand you the rest of the shares. That rate is a payroll setting. It isn't your actual tax rate, and it doesn't account for your state, your other income, or estimated payments.

What's left is still one stock

After shares are sold to cover taxes, what's left is usually your employer's stock. If most of your net worth is in one company, that's worth noticing, however big the balance looks.

RSUs and options get lumped together

An RSU is usually a promise to give you shares once they vest. An option is the right to buy shares at a set price, and ISOs and NSOs are taxed differently from each other. Calling all of it "stock" hides the details your CPA needs.

What to pull together

Have these ready before you talk to a CPA, an attorney, or an advisor.

What you actually have: RSUs, ISOs, NSOs, or a mix. Check the grant agreement instead of going from memory.
Vest dates, share counts, and whether your plan withholds shares, withholds cash, or sells to cover.
Whether you're covered by an insider trading policy or trading windows.
Any cash you need in the next year that has nothing to do with the stock.
Everything else you own besides company stock.

Who to ask about what

Bring the grant agreement and your latest vest confirmation, not just a screenshot of the brokerage account.
Ask your CPA how the withholding lines up with the rest of your income this year.
If you're thinking about selling, check your company's trading rules first, and talk to legal if you're an insider. Taxes come after that.

What this page can't tell you

It won't tell you to sell, hold, gift, or exercise anything.
It won't estimate your tax bill or tell you how much of one stock is too much.
It isn't a financial plan.