JNJ RSUs Quick Reference Guide to Vesting

JNJ RSUs are vesting on February 13, 2020

My Restricted Stock Units (RSUs) just vested.  What happens next?

  • Vested price is the price of JNJ stock on 02/13/2020.

  • NET Shares (net of Federal, Social Security, Medicare, State and local taxes) are deposited into your Fidelity Brokerage account 2-3 business days after vesting.

 
GRANTED SHARES.png
 

                                                                      

You can SELL the remaining shares immediately and use proceeds to fit your overall financial plan

  • NO additional tax is due upon sale since Vested Amount (Number of shares x Stock price) will be added to your W-2 income and will show on your paycheck under a separate line item.

                       OR

You can KEEP the remaining shares and choose to sell them later

  • Additional tax is determined based on the difference between the vested value and the future sale price.

  • Depending on how long you keep the shares after they vest, you will either pay capital gain tax (10%, 15% or 20%) or regular income tax at the time of sale.

IMPORTANT: Your tax preparer will need your 12/31 paystub and 1099 statement from Fidelity to report accurate gain on sale

Should I sell now OR later? It all depends on your INDIVIDUAL answers to the questions below:

  • Do you own more shares of the JNJ stock in your 401k or individual account at Fidelity and/or Computershare?

  • Do you have more RSUs or Stock Options vesting in the future

  • Do you feel that your employer stock will go higher, and if so, would you buy more today?

  • What is your new tax bracket based on the 2018 Tax Law?

  •   Did you consider the implications of the Secure Tax Act passed in December of 2019?

We can HELP. Give us a call so we can help you make the most of your benefits.

Marianna Goldenberg, CDFA™Comment