When it comes to RSUs, most people default to one of these paths without giving it much thought:
1. Hold the shares and wait for a price target that exists only in your head, meanwhile paying taxes on dividends and capital gains taxes when you eventually sell
2. Sell and move on โ the cash settles at E*Trade, sits there earning nothing, and later you realize you never transferred it anywhere
3. Sell and buy the car โ if you still go into the office, you already know what the parking lot looks like in June
These approaches may not reflect a strategy. They occur when a plan is not clearly defined in advance.
This is an area where I often work with Merck employees to develop a more structured approach. The goal is to establish a plan, so the proceeds are aligned with broader financial objectives.
A good RSU plan typically covers:
โขย Tax impact at vesting and at sale
โขย Account selection for the proceeds (brokerage account, IRA, or back into your 401(k)
โขย Investment allocation aligned to your retirement timeline and other goals
โขย Coordination with other Merck compensation like your AIP and pension
If your RSUs are vesting soon and you do not have a clear next step, it may be worth having a conversation.ย
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Key terms:ย
Merck RSU tax planning
What to do with Merck RSUs
Merck Employee Financial Planning
Apollon Financial, LLC (“Apollon”) provides advice and makes recommendations based on the specific needs and circumstances of each client. The information contained herein is intended for information purposes only and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances. Please visit our website www.apollonfinancial.com for other important disclosures.
