Restricted Stock Units, or Google RSUs as Googlers prefer to call them, are units that your employer awards you as a reward for increasing company value. During your employment, Google RSUs are given to you gradually over time in increments known as "vesting," and each unit has the same value as one share of Google stock. You get one share of the business equity for each unit that is issued to you.
Like your pay and earnings, Google RSUs are subject to conventional tax rates. In the year that the units vest in you, you report this income on your IRS Form W-2 together with any taxes withheld.
Until you achieve $1 million in stock compensation income in a calendar year, federal withholding tax on RSU income is withheld at a fixed rate of 22%. After that, the withholding tax rate changes to 37%. You will be required to pay taxes on this RSU income at the end of the year if you anticipate that your effective tax rate will be higher (assuming no anticipated tax payments were made during the year). Location-specific state withholding varies.
You may choose to have a larger amount deducted from your vesting Google RSUs at Google. This may make it easier for you to keep track of and assist lower your tax payment at the end of the year.
See my post Offer Letter Basics: RSUs and How to Consider Cash Reserves and Tax Reserves for GSUs for further details.
The 401(k) at Google
In their 401(k), Google provides target date funds, index tracking options, and actively traded options. Vanguard is one of our favorite bands, so we are thrilled to see them represented.
Google provides its workers with two alternatives for 401(k) contributions: the standard option and the after-tax option! "Mega Roth conversion" or "mega backdoor Roth" are other names for this tactic. Essentially, it allows you to contribute a sizable amount of money after taxes to your 401(k) plan, which you may then convert to a Roth to grow tax-free over time. The after-tax 401(k) option may be a terrific method to increase your retirement contributions, even if it could alter due to future legislation.
As usual, don't forget to check that the beneficiary information is still in line with your intentions by reviewing it yearly!
Additional Advantages
Group Legal Plan: This offers some protection for legal office services, such as preparing living trusts and reviewing leasing agreements.
How does it operate?
Like health insurance and doctors, small law practices have a set fee agreement with the group legal plan provider that they must follow in order to collaborate with you. In contrast to health insurance, the network could not have as many lawyers in your region or might not provide the kind of value you had hoped for. Before determining whether to proceed with this approach, we advise reading through evaluations of the experiences of other workers.
Disclosure: The advice given above is generic in nature and isn't predicated on an understanding of the unique requirements or circumstances of any one person. The intention is not to provide management, supervision, or consulting services for individual investments.
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