Last year I have been granted some Restricted Stock Units (RSUs) by my employer that vest over three years. The first batch is about to vest and I soon have to choose a tax-withholding method, between these two:
- Withhold enough shares/units to pay the tax withholding due at vesting or distribution
- Deposit cash into your Stock Plan Account to pay the estimated tax obligation
I am not sure of the financial implications of either choice. Could anyone shed some light on the matter, please?
Possibly important side notes:
- I currently live in the UK
- The employer is headquartered in the US
Finally, I understand the rational way to deal with this kind of "bonus" is to sell and invest in a more diversified way (as pointed out by this StackExchange answer). Would choosing whether to sell or hold affect the choice of the tax-withholding method above? If so, in which way?