Re:Tech IPOs could be windfall for California budget
by toast0 on Monday April 01, 2019 @12:58AM
(#19540627)
There's some competing priorities. If you move, chances are you're leaving the job, which you might like, and the job market (yes, other markets exist, but they're not the same). That may mean missing out on future vesting.
If you're vesting non-quals or RSUs after the IPO, California is going to tax you on some portion of it anyway, so that makes it harder to stick it to the (California) man.
It takes time to make a move, if you haven't already thought about moving to places that happen to be tax free.
At the same time, diversifying sooner is definitely worth paying CA tax for. I'd rather pay 13% (or whatever) or $$$$ than 0% of $$$.
Anyway, the right thing to do tax wise is somehow get your shares into a roth account while they're not worth much... Then we they become worth a lot, you can diversify without a tax penalty, and you can setup a 'substantiallly equal periodic payment' plan to access the earnings.
If you're vesting non-quals or RSUs after the IPO, California is going to tax you on some portion of it anyway, so that makes it harder to stick it to the (California) man.
It takes time to make a move, if you haven't already thought about moving to places that happen to be tax free.
At the same time, diversifying sooner is definitely worth paying CA tax for. I'd rather pay 13% (or whatever) or $$$$ than 0% of $$$.
Anyway, the right thing to do tax wise is somehow get your shares into a roth account while they're not worth much... Then we they become worth a lot, you can diversify without a tax penalty, and you can setup a 'substantiallly equal periodic payment' plan to access the earnings.