Restricted Stock Units (RSUs) vs Restricted Stock Awards (RS/RSA)

[Thomas_S]

I have a 1099-B for the first time this year after selling stock that I received from my employer over the span of several years. It had a vesting period which had passed, but I don't understand if I should be marking the type as Restricted Stock Units or Restricted Stock Awards. Can you help me understand the difference between these and how to determine which one I have?

[SharonD007 · Accepted solution]

Both restricted stock awards (RSA) and restricted stock units (RSU)  are grants of stock offered to employees.  A restricted stock unit (RSU) is an award of shares of stock offered as compensation that comes with conditions (usually a vesting period) before they are transferred to the individual.  There's not a tax liability when you receive the award, but there is when the RSU vests and you receive the stock shares.

A RSA is a type of compensation that grants the individual stock with restrictions.   The award is generally issued to early employees of a company and gives them the right to purchase shares at FMV,  at a discount or at no cost on the grant date. The individual owns the shares on the date they accept the grant and satisfies the requirements. RSAs are eligible for a 83 (b) election and are subject to tax at grant date.

For more information, refer to the TurboTax Help articles What's the difference between restricted stock and a restricted stock unit (RSU)? (in the article RSA is called restricted stock) and How to Report RSUs or Stock Grants on Your Tax Return.