Hello, Team!! In 2024 I earned RSU's at my place of employment. No shares were vested in 2024 (the first 1/3 just vested in March 2025, and the second 1/3 will vest March 2026, etc.). However, I received notification from my employer in 2024 that because I am over 55 ("retirement eligible" -- my wife thinks otherwise, LOL), I am no longer subject to forfeiture of the award.
They also told me: "Once your awards are no longer subject to forfeiture, the IRS requires payment of FICA (Social Security and Medicare) taxes by the end of the calendar year for any unvested Restricted Stock Unit (RSU) award. FICA taxes in connection with your unvested RSU awards granted in 2024 will be collected via “net settlement”. "
I did NOT receive any additional paperwork or tax forms for 2024 tax season from my employer on this matter, but I did see that the FICA seems to have been addressed on my 2024 W-2 paperwork. I wanted to verify that I was not supposed to receive (or request) any additional paperwork.
For RSU's, is everything done via the W-2? Meaning, when I do next year's tax returns, I will have 1/3 of my RSU's that are vested. Let's assume I do NOT sell any of these shares. If that is the case, would my W-2 "tell the story" of the RSU's that have vested (and any applicable FICA)? If I were to sell the vested RSU's, I would receive a form to file, correct? Is it a 1099-B? In terms of doing my taxes with TurboTax, are there any other considerations or is everything covered by the entering of my W-2 (as long as I do not sell the shares)?
Because I am pre-paying the FICA, how can I make sure that I will not double-pay in future years?
Huge thanks! My income is typically very straight-forward and although I appreciate my employer providing me with the RSU's, they are throwing me for a loop! Thanks for any assistance you can provide.
