Simple couple of questions. Assume If I got 1000 RSUs at year Jan 2018, I got 250 shares after one year cliff, then 62.5 shares per quarter for the next 3 years until 2022. Assume Lyft goes IPO at year 2023. 1. At the beginning of 2019, should I get exact 250 shares or less than that because of whatever tax reason? 2. My first year vest, the 250 shares. Does that appear on my W2? Do I need to pay tax for it for tax year 2018? And the income is 250*FMV? 3. At year 2023, I got all 1000 RSUs. But I don’t need to pay extra tax until I sell them? 4. If I quit in good standing before ipo, the vested RSU are still valid and I can get the real stocks whenever lyft goes IPO?
What if OP quits before IPO? Shares are Still his?
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You don't pay taxes until the ipo. You don't get the shares in any usable fashion until the ipo. And when you do get them, they withhold shares to cover taxes. So in your scenario, in 2023, you'll have a one time event where all 1000 shares are given to you, 250 (or some such number) will be withheld for taxes.
Then at year 2023 my family income will be really huge and I should pay the highest level of tax?
That’s true. Your RSU is accumulated and it will be reported as your income all at once when you see the RSU in your broker account