[quote=SK in CV][quote=no_such_reality]It’s not that bad, either sell immediately or hold for a year plus.
As for the immediate taxes, they have taxes withheld by automatically selling a portion of your holdings to cover necessary withholding. The only problem is most aren’t withholding enough based on the marginal tax bump they take due to the inflated earnings.
I don’t think bay area engineers will get hit that hard, more and more companies are doing away with RSOs for rank and file.[/quote]
Yeah, it isn’t that big of a deal. Someone threw out an income of $286K a year for a husband and wife (I think it was AN?). Those people aren’t likely to be affected much. If they put only 5% of their income into a 401K, that reduces their taxable income by $14K. Another $20K in mortgage interest and $6K a year in property taxes and their taxable income is under $250K. Even if their taxable income is $286K, that’s an increase in income taxes of $300 a month. I gotta say, if you’re making almost $300K a year and a hit of $300 a month serious affects your lifestyle, you’re doing something very wrong.[/quote]
I agree. I don’t think financially it’s a it. It’s more of a “WTF are you gonna do with the money” question…I stand by my assertion those hit will be the ones on minimum wage now that costs in general in CA are going up. .25% sales tax increase might not seem like a big deal, but for someone really scraping by…It’s a problem.
