If you work at Apple, Intuit, or any company that pays a large part of your compensation in restricted stock units, the last quarter of the year is when most of the avoidable mistakes happen. Here is a short checklist we walk through with clients every fall.
1. Check your withholding against your actual bracket
When RSUs vest, your employer withholds federal tax at a flat supplemental rate, 22% on the first $1 million of supplemental wages in a year and 37% above that. If your total income puts you in the 32%, 35%, or 37% bracket, that 22% withholding is not enough, and the difference shows up as a surprise bill in April, sometimes with an underpayment penalty attached. Add up your vests to date, estimate the rest of the year, and if there is a gap, either increase your W-4 withholding on regular pay or make a fourth-quarter estimated payment by January 15.
2. Know how much of your net worth is in one stock
Vested shares you have kept, unvested grants, ESPP shares, and any options all count. Add them up as a percentage of everything you own. There is no magic number, but when a single employer is both your paycheck and more than 20 to 25% of your investable assets, you are carrying concentration risk on top of career risk, and it is worth having a plan to reduce it over time rather than hoping.
3. Decide what to do with shares that vested this year
A common misconception is that holding vested RSUs is somehow tax-advantaged. It is not. You already paid ordinary income tax on the value at vest, and that value became your cost basis. Selling the day they vest creates almost no additional tax. Holding them is simply a decision to keep buying your employer’s stock with after-tax money, which is fine if it is a decision and not a default.
4. Look for tax-loss harvesting opportunities
If you hold shares from earlier vests that are now below their cost basis, selling those lots realizes a capital loss that can offset gains elsewhere or up to $3,000 of ordinary income. Just watch the wash-sale rule: a new vest within 30 days before or after the sale can disallow the loss. Check your upcoming vest dates before you sell.
5. Use the cash you already have
Year-end is also when the retirement-account math is easiest to fix. For 2026 the 401(k) employee deferral limit is $24,500 ($32,500 if you are 50 or older, $35,750 for ages 60 to 63). If your plan allows after-tax contributions and in-plan Roth conversions, the mega backdoor Roth can put substantially more into Roth than the standard limit. Vested RSU proceeds are a natural funding source.
None of this requires selling everything or making a big bet either way. It requires knowing the numbers and making the decisions on purpose. If you would like help running through your own situation before year-end, schedule a call.
This information is for reference only and should be reviewed with a qualified professional as your situation may vary from others. Nothing mentioned above is a guarantee nor should this be considered advice. Tangent Retirement does not and cannot deliver tax advice and the material herein is for information only. Please consult a qualified tax professional for opinions related to your particular situation. Investment advisory services are offered through Tangent Retirement Inc., an investment adviser registered with the State of California. Registration as an investment adviser does not imply any level of skill or training. Investing involves risk, including the possible loss of principal.
