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Income & investing · plain-English guide

Turn stock grants into a vesting forecast

Model existing unvested stock, future refresh grants, the tax at vesting, and how much stock you keep.

2 min readWorked example included
How to read itRSU vesting
Core relationshipvalue at vesting = each scheduled grant slice adjusted by its stock-growth assumptions

Conceptual illustration. The annual engine resolves the connected taxes and cash flows described below.

Start here

The basics

Open the stock-grant section on a job’s income card. Enter the stock already granted and any future annual refresh, then set their vesting schedules. The plan turns the scheduled vests into income as they occur.

Choose whether vested shares are sold for cash or partly kept in a named investment account.

Illustrative numbers

Annual refreshes build gradually

Annual refresh$40,000

Vesting25% a year for four years

First refresh vest$10,000 twelve months after the grant

Four overlapping refreshes, with flat stock prices$40,000 vesting per year

The full ongoing refresh amount is reached gradually. Existing unvested grants add their own vesting amounts on top.

Calculation transparency

How it works in MoneyWhatIf

  1. 01

    Existing grants and future refresh grants have separate schedules. Refresh amounts and the stock price can follow different change assumptions.

  2. 02

    Vesting is modeled as job income, including applicable income and payroll taxes. Kept shares land in the selected account with basis equal to their value at vesting.

  3. 03

    Stock retained in an account is not counted as a second saving contribution. Later growth above its new basis can create a capital gain when sold.

  4. 04

    By default, unvested stock is forfeited when the job ends. Change the exit setting if existing grants should continue vesting. If no eligible destination is selected, vested shares are sold for cash.

Keep in mind

Model limits

The vesting schedule is annual; a scheduled first-year tranche is not prorated like recurring salary in a partial year.

RSUs do not cover stock options, exercise prices, or an ISO bargain element for AMT. A tax liability in the projection is not a payroll withholding instruction.

This explanation documents the planning model. It is educational, not individualized tax, legal, Medicare, or investment advice.

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