Finances & Family
Throughout my 5 years at Amazon, the taxes associated with Amazon’s RSU compensation were commonly misunderstood. This post will hopefully allow you to understand the basics around each situation. Is my RSU treated as ordinary income or capital gains income? The cash amount of the RSU at the time of vest, is considered ordinary income,
You’ve finally reached your RSU vesting date, now what? In this post we will review the three “Release Methods” with which you can have your RSU’s be processed as. Each option can change how you receive the RSUs and how much tax will be withheld from the award.
Many large tech companies like to compensate their employees through other means than the normal regular recurring paycheck or base pay. One of the most common ways to do this is through the Restricted Stock Unit or RSU. An RSU is compensation in the form of company stock. RSU’s will be set up on a vesting schedule, which determines when the shares will actually become yours.
Some people are lucky enough to live at the intersection of their passion and what they get paid to do, but most people are not. Most people slug through the week, as their time is someone else’s, and look forward to the weekend to do what they enjoy with their time. Most of us have experienced these emotions at some point, and wondered what it would take to be the penguin every day, and to wake up excited about how you’re going to spend YOUR time. That’s what Financial Independence is all about – having the means to do what you love and not worry about your finances; for some that may mean keep doing the same thing they’ve always done, for others it’s focusing more on their passions, hobbies, families, etc.
As I referenced in the intro to this blog, and with the site name “The Family WORTH,” there would also be a personal finance angle to the site. In 2013, I stumbled into the world of personal finance and learned a lot from others who shared their experiences through blogs. I decided to share the tools we’ve learned along the way, and how it’s worked out for us in the event it may be helpful for others.
