I have some RSUs that will vest next year. I plan to contribute to an education fund for each of my kids. From what I've read, it sounds like the amount at vesting is considered ordinary income, while any gains/losses between the time of vesting and selling is considered short- or long-term capital gains/losses (based on price sold vs price basis at vesting, and depending on whether the positions were held for less than or more than a year).
First, is all of the above correct?
Second, can I choose to defer the taxes (rather than "sell to cover") until the end of the year when I do my normal income taxes, so that I can take all of the money from the sale and dump it into educations funds?
Finally, am I correct in understanding that if I can not "sell to cover" and defer the taxes until the end of the year, I won't actually have to pay any taxes on the income portion if I invest all of it into an education fund (or traditional IRA, etc)? I would only pay taxes on the short-term capital gains on the difference between the vesting price and the sales price?