You Earned the Equity. Make the Most of It.
Every vest comes with a tax bill. Plan it first.
RSUs, options, and stock purchase plans can build real wealth. The tax decisions around them can quietly take a large share of it back.
30 minutes. Free. No tax return needed.
Four things every equity-compensated professional should weigh
The team at WealthQuant Advisors looks at these together, because each one changes the others.
RSUs and withholding
RSUs are taxed as ordinary income when they vest. Federal withholding on supplemental income is generally a flat 22%, or 37% above $1 million in a year, which can fall well short if your actual bracket is higher. A big vesting year can turn into a bill at filing.
ISOs and the AMT
Exercising incentive stock options and holding the shares can trigger the alternative minimum tax on gain you haven’t sold. The size and timing of each exercise, sometimes across two tax years, decides whether it’s a planned cost or a surprise.
NSOs and ESPPs
Nonqualified options are taxed at exercise, and ESPP shares have their own holding-period rules. When and how you sell determines whether the gain is taxed as ordinary income or at capital gains rates.
Concentrated stock and liquidity events
After years of vesting, one company can become most of your net worth, with a large embedded gain on top. An IPO, lockup expiration, tender offer, or acquisition puts a deadline on the decision, and the best moves happen before it.
Strategies that fit an equity-compensated professional’s plan
Your customized tax plan draws on these strategies, depending on where you are in your equity timeline.
Withholding and estimated payment planning, ISO exercise sizing, NSO timing, 83(b) elections
A written diversification schedule, exchange funds, loss harvesting to offset gains, holding-period timing
IPO, lockup, tender offer, and acquisition planning, including QSBS eligibility
Donating appreciated shares to a donor-advised fund to avoid the gain
Gifting shares to family or trusts, including QSBS stacking done well before a sale
We build the plan with your CPA and attorney, on a timeline that protects every deadline.
Common questions from equity-compensated professionals
Is the tax withheld on my RSUs enough?
Often not. The federal withholding rate on supplemental income is a flat rate that doesn’t reflect your total income. If you’re in a higher bracket, the gap shows up when you file. We model your full year so you can set aside the difference or adjust.
What is the AMT trap with ISOs?
Exercising ISOs and holding past year-end can create taxable income for the alternative minimum tax even though you haven’t sold anything. Planning the number of options you exercise, and when, is how you avoid an unexpected bill.
Should I make an 83(b) election?
If you receive restricted stock, an 83(b) election within 30 days can lock in a low tax basis and start your capital gains clock. Miss the window and it’s gone, so it’s time-sensitive.
Could my shares qualify for QSBS?
Possibly. For stock issued after July 4, 2025, qualifying gain can be 50% excluded after three years, 75% after four, and 100% after five, up to a federal cap of $15 million. Older stock generally keeps the earlier five-year rules. California doesn’t follow the federal exclusion, so state tax still applies.
Educational only. Not tax, legal, or investment advice. Strategies depend on your situation.
See what your equity is really worth after tax
A free 30-minute Tax X-Ray. We’ll look at your grants, your vesting calendar, and the moves worth considering. No tax return needed.