We encourage you to flip this thinking. By living off of vesting shares of stock, you gain cash-flow flexibility and can then take advantage of the many tax-preferred benefits available to you. Restricted Stock Units vest multiple times per year and vary significantly in amount each time. We can work with you to organize and plan your cash flows in order to implement many of these tax-saving strategies. This benefit allows you to purchase Microsoft stock at a discount typically around 15 percent to the open market.
Since these contributions are not tax-advantaged, the Employee Stock Purchase Program is usually one of the benefits we suggest that employees capitalize on last. You may already be too heavily concentrated in employer stock as a result of RSUs, and participating in the ESPP can exacerbate this problem. Please reach out to us to discuss your specific situation and whether the benefit would be a good option for you. Double the donation! Increase your impact for the causes that matter most to you by leveraging this benefit. For more information or to register for this program, click here.
At Avier Wealth Advisors, client education is the bedrock of our service model. Our advisors regularly publish articles on how you can best leverage the benefits available to you. Take a moment and check out their latest tips below. We invite you to peruse our video library to learn more about the key benefits available to you as a Microsoft employee. Our advisors break down complex financial topics into the basics of what you need to know to get the most out of your plan.
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Start a Conversation. Deferred Compensation. Stock Awards. Other Benefits. Key Dates We have outlined the key dates concerning benefits. Click the button below to view the timeline. January — March. April — June. July — September. July Review k Contributions Confirm contributions are on pace to max out benefits Review and adjust allocation if needed. October — December. Unlike a K, there is a distribution timeline employees must follow. Every time an employee makes a contribution, they must choose a payout period.
Microsoft Stock Could Keep Surging. How to Play It With Stock Options. | Barron's
Even though it sounds like you're investing most of your salary, you can start cashing in your Microsoft Stock Awards for money to live off of as you become vested each quarter. Microsoft rewards RSUs in August.
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Older employees receive 10 percent of their RSUs every six months for five years. Employees pay taxes each time their RSUs vest - so four times a year. Microsoft keeps a portion of the stocks issued, cashing them out to cover the tax liability. You pay taxes again when you sell the stocks.
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The profits become capital gains, but the length of time you held onto the stock matters. Your capital gains are the difference between the price you sell the stock for and the original vested price or the fair market value on the vesting date.
The longer you hold onto the stocks, the fewer taxes you pay. OK Cancel. Add to portfolio. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it?
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