Your RSUs Are Vesting. Here's What to Do Next.
Henry Supinski, ChFC® · 4 min read · April 2026
If you work at a tech company, your RSUs are almost certainly your single largest source of wealth accumulation — and your single largest tax liability. Most tech employees have no plan. Here's a simple framework.
Understand the Tax Event First
When RSUs vest, the value is treated as ordinary income — taxed at your marginal rate. This happens whether you sell or not. By the time you see the shares in your account, the tax is already owed. The decision you need to make is what to do next.
The Concentration Problem
Most tech employees who hold their shares accumulate significant concentration in a single stock. This is a risk management problem, not just a tax problem. The optimal strategy depends on your conviction in the company, your overall financial picture, and your tax situation — not just what feels right.
The Decision Framework
- If you'd buy this stock today with cash, holding makes sense.
- If you wouldn't buy it, ask yourself why you're holding it.
- Diversification strategies exist that can reduce risk without triggering a massive tax event all at once.