Under certain conditions you are now going to pay taxes on your UNVESTED RSRs. So you don't get sh*t for 4 years, but you get to lose shares due to the FICA taxes on them.
I understand this is IRS law but still.
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@g2 I am not 55 with 5 years - I am younger but I have 80 points. I got the email. I also thought it said it was coming out of the shares but would be reflected on our paychecks.
@b4 not part of the big beautiful bill. It’s been like this for years. You pay the FICA taxes now only if you are retirement eligible, who’s is 55 years old and 5 years as a WF employee. They don’t take shares for this, it comes out as a deduction from your regular paycheck. Good news is that when they actually do vest and you cash out you only pay income tax on those shares, so you will get 18 shares, not all 27.
@dr lol
you wont have to pay it again and in the event the shares go up in value between now and when you vest you'll be better off.
FICA is coming out of the shares not the paycheck. Your shares will be reduced in that amount. Email is real clear on that.
Typo - it is NOT part of the BBB.
It is. It part of the big beautiful bill. It is tax law. If you are going to be retirement age when the RSRs vest, then they tax you on them now. It does not come out of the shares…it comes out of your November paycheck. So, while it does take a bit of a bite, usually anyone earning RSRs will have passed the FICA cap by then and only owe a much smaller Medicare tax. So, kind of a benefit, too, since you won’t pay this when they do vest. You will still pay regular income tax, and that will be taken out of the shares when they vest.
@a8 big beautiful bill
@af it’s part of the big beautiful bill
this is IRS reg. it's very clear and explicit.
You've got to pay those taxes anyway. at least they're not asking you to send WF a check - they just take it out of the shares - which is what would happen anyway when they vest.
@ab right, but at retirement age, they beat immediately.
If not at retirement age, they go into tye vesting schedule. I've never heard of getting taxes on unvested shares
it's only for people close to retirement age and this isn't a WF things it's an IRS thing. Thankfully I've alreadyqded out my FICA for the year so I won't be subject to any additional withholding other than Medicare
i have had to pay this fica. for example if retirement eligible, you will get the rsrs regardless if you leave the bank. hence they are considered to be earned now and you pay the fica now. it's all about whether they are guaranteed to vest in the future or can be forfeited
F*ck the tyrannical IRS taking away freedom
in most cases you get 1/4 each year that you can then keep or sell, paying taxes at the time they vest for the portion that vest. unless this is something new I have never had to pay taxes on any unvested shares in all the years I have received them.