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Comparing Restricted Stock Units and Restricted Stock Awards
Both RSUs and RSAs are forms of restricted stock, but they differ in timing of ownership, taxation, and the 83(b) election opportunity. Learn which is better for your situation.
| Category | RSUs | RSAs |
|---|---|---|
| When You Own Stock | At vesting | Immediately (subject to restrictions) |
| 83(b) Election Available | No | Yes - within 30 days of grant |
| Tax Timing | At vesting (FMV) | At vesting, unless 83(b) filed |
| Upfront Tax Cost | None until vesting | Can be significant with 83(b) |
| Voting Rights | After vesting only | Immediately (usually) |
| Dividend Rights | After vesting only | During vesting period |
| Risk of Forfeiture | No tax paid on unvested units | 83(b) tax not refundable if forfeited |
| Common Usage | Public companies | Startups and private companies |
At vesting
Immediately (subject to restrictions)
No
Yes - within 30 days of grant
At vesting (FMV)
At vesting, unless 83(b) filed
None until vesting
Can be significant with 83(b)
After vesting only
Immediately (usually)
After vesting only
During vesting period
No tax paid on unvested units
83(b) tax not refundable if forfeited
Public companies
Startups and private companies
Need help deciding between these options? Get personalized guidance.
RSUs (Restricted Stock Units) and RSAs (Restricted Stock Awards) are similar forms of equity compensation, but they have important differences in when you own the stock and how you're taxed.
RSUs are a promise to deliver shares in the future when vesting conditions are met. You don't own the shares until they vest.
Key characteristics:
RSAs are actual shares granted immediately, but subject to vesting and forfeiture conditions. You own the shares from day one, but may have to give them back if you leave.
Key characteristics:
The biggest difference is the 83(b) election available for RSAs:
Without 83(b): Taxed on full value when restrictions lapse With 83(b): Taxed on value at grant (often much lower for startups)
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This content is for educational purposes only and does not constitute financial advice. The information provided is general in nature and may not appl...
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