[ridv]

This is one thing I've struggled to understand.

Scenario A: RSUs have an expiration date. RSUs you own expire before the company hits a liquidity event.

Scenario B: RSUs do not have an expiration date but the company goes bankrupt/dissolves and never hits a liquidity event.

Is one of these scenarios taxable and the other one not? One of my biggest fears about joining a startup (pre covid) was scenario A happening.

[gonehome]

This is my current possibly incorrect understanding:

Scenario A there’s no tax, but the company is failing to hold up their end of the bargain and this would probably lead to everyone quitting or some sort of RSU regrant.

Scenario B I think you’re taxed when they vest. If there’s no IPO then you don’t get any money.