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How do I enter & track Restricted Stock (Grants), not Options?

mseltzer4
mseltzer4 Member ✭✭
edited June 2019 in Investing (Windows)
I see all the help and details about Options, but Restricted Stock Units (Grants) are not Qualified or Non-Qualified as the Wizard makes you select during the "Stock Option Entry" process.

Comments

  • mseltzer4
    mseltzer4 Member ✭✭
    edited July 2016
    I want to track in Quicken as I have a 4 yr vesting period @ 25% / year.  So there is no Exercise price until the annual vesting date.
  • K.O. (Win-Premier)
    K.O. (Win-Premier) SuperUser ✭✭✭✭✭
    edited December 2017
    I used to get RSUs and here is how I handled them.

    1. I created an investment account to hold the RSUs. This was the same account to which the RSUs would be stored in when exercised.
    2. Then I created a stock in Quicken with the stock symbol = your company stock symbol but with RSU at the end of the name. For example, ABC would be the stock symbol and ABC Company RSU would be the name. This way you can have both ABC Company and ABC Company RSU (separate securities) but with the same stock symbol. This will keep the value of the RSU up to date with the current price of the stock.
    3. When I received a grant I would add shares (add shares transaction) of the ABC RSU to the account. This way I knew how many shares I had at any given time.
    4. Then I would enter reminder transactions corresponding to vesting dates.
    5. When RSUs vested I would remove the number of vested RSUs via remove shares transactions.
    6. When I received my paycheck statement related to the vesting of the RSUs I would transfer the cash amount related to the vesting from the paycheck to the brokerage account holding the stock. You'll likely need to add the income as an taxable income item to your paycheck in Quicken so that you can transfer that same amount to the investment account.
    7. Buy the actual shares of ABC Company (not the RSU shares) via a buy transaction.
    8. If you use share withholding as your tax payment then you need to sell quantity of shares (at the same price as you bought them at) necessary to cover the tax and then transfer that amount (via the same paycheck as in #6) back to your paycheck to be used to cover the taxes withheld.

    For #6 and #8 your employer should provide you all the information related to purchase price, amount sold for taxes, etc. They probably won't have it available on the exercise date so you may need to retroactively enter the information when you get it.

    If you follow this it will allow you to know how many RSUs you have at any given time. Convert RSUs to actual stock when vesting occurs. Address the value of the exercise from a tax perspective (i.e. income on your w2) and keep the gain/loss accurate for the exercised shares.

    Not the easiest process but at least you can keep everything in order from an accurate financial perspective.
  • mseltzer4
    mseltzer4 Member ✭✭
    edited July 2016

    I used to get RSUs and here is how I handled them.

    1. I created an investment account to hold the RSUs. This was the same account to which the RSUs would be stored in when exercised.
    2. Then I created a stock in Quicken with the stock symbol = your company stock symbol but with RSU at the end of the name. For example, ABC would be the stock symbol and ABC Company RSU would be the name. This way you can have both ABC Company and ABC Company RSU (separate securities) but with the same stock symbol. This will keep the value of the RSU up to date with the current price of the stock.
    3. When I received a grant I would add shares (add shares transaction) of the ABC RSU to the account. This way I knew how many shares I had at any given time.
    4. Then I would enter reminder transactions corresponding to vesting dates.
    5. When RSUs vested I would remove the number of vested RSUs via remove shares transactions.
    6. When I received my paycheck statement related to the vesting of the RSUs I would transfer the cash amount related to the vesting from the paycheck to the brokerage account holding the stock. You'll likely need to add the income as an taxable income item to your paycheck in Quicken so that you can transfer that same amount to the investment account.
    7. Buy the actual shares of ABC Company (not the RSU shares) via a buy transaction.
    8. If you use share withholding as your tax payment then you need to sell quantity of shares (at the same price as you bought them at) necessary to cover the tax and then transfer that amount (via the same paycheck as in #6) back to your paycheck to be used to cover the taxes withheld.

    For #6 and #8 your employer should provide you all the information related to purchase price, amount sold for taxes, etc. They probably won't have it available on the exercise date so you may need to retroactively enter the information when you get it.

    If you follow this it will allow you to know how many RSUs you have at any given time. Convert RSUs to actual stock when vesting occurs. Address the value of the exercise from a tax perspective (i.e. income on your w2) and keep the gain/loss accurate for the exercised shares.

    Not the easiest process but at least you can keep everything in order from an accurate financial perspective.

    Thank you.  I'm just disappointed that this is not significantly easier in Quicken.
  • Unknown
    Unknown Member
    edited July 2016

    There is a simple alternative that I like to use. It allows me to see the value of the RSU in my portfolio, track the gain upon vesting, and then handle the tax implications appropriately. I basically treat them like a stock option with a $.01 strike price. Here is what I do:


    1) Enter the RSU the same as a stock option. Normally a $.00 strike price gets you to the same point but Quicken doesn't allow that. So use $.01 per share..



    2) At vesting date, enter an exercise-and-sell transaction, but increase the "selling"price by $.01 per share so you get the same net gain. Yes this gets the right income amount but the proceeds and basis are slightly wrong (but that is very immaterial and just presentation).


    3) Use the proceeds from #2 to buy the shares back, assuming you still hold them after they vested.


    Now, if we could get Quicken to allow a $.00 strike price this would all be solved.
  • Unknown
    Unknown Member
    edited July 2016

    I used to get RSUs and here is how I handled them.

    1. I created an investment account to hold the RSUs. This was the same account to which the RSUs would be stored in when exercised.
    2. Then I created a stock in Quicken with the stock symbol = your company stock symbol but with RSU at the end of the name. For example, ABC would be the stock symbol and ABC Company RSU would be the name. This way you can have both ABC Company and ABC Company RSU (separate securities) but with the same stock symbol. This will keep the value of the RSU up to date with the current price of the stock.
    3. When I received a grant I would add shares (add shares transaction) of the ABC RSU to the account. This way I knew how many shares I had at any given time.
    4. Then I would enter reminder transactions corresponding to vesting dates.
    5. When RSUs vested I would remove the number of vested RSUs via remove shares transactions.
    6. When I received my paycheck statement related to the vesting of the RSUs I would transfer the cash amount related to the vesting from the paycheck to the brokerage account holding the stock. You'll likely need to add the income as an taxable income item to your paycheck in Quicken so that you can transfer that same amount to the investment account.
    7. Buy the actual shares of ABC Company (not the RSU shares) via a buy transaction.
    8. If you use share withholding as your tax payment then you need to sell quantity of shares (at the same price as you bought them at) necessary to cover the tax and then transfer that amount (via the same paycheck as in #6) back to your paycheck to be used to cover the taxes withheld.

    For #6 and #8 your employer should provide you all the information related to purchase price, amount sold for taxes, etc. They probably won't have it available on the exercise date so you may need to retroactively enter the information when you get it.

    If you follow this it will allow you to know how many RSUs you have at any given time. Convert RSUs to actual stock when vesting occurs. Address the value of the exercise from a tax perspective (i.e. income on your w2) and keep the gain/loss accurate for the exercised shares.

    Not the easiest process but at least you can keep everything in order from an accurate financial perspective.

    Couple of follow-up questions...

    On step 3 do you add the total amount of the grant? For example, if you received 1000 shares on 1/15/14 of ABC Company vested over 4 years, would step 3 enter a transaction dated 1/15/14 for 1000 shares of ABC Company RSU at the market price on the day of grant?
    On step 4 what do you mean by entering reminder transactions? An income or transfer reminder on the Bills tab?

    Thank you!
  • K.O. (Win-Premier)
    K.O. (Win-Premier) SuperUser ✭✭✭✭✭
    edited July 2016

    I used to get RSUs and here is how I handled them.

    1. I created an investment account to hold the RSUs. This was the same account to which the RSUs would be stored in when exercised.
    2. Then I created a stock in Quicken with the stock symbol = your company stock symbol but with RSU at the end of the name. For example, ABC would be the stock symbol and ABC Company RSU would be the name. This way you can have both ABC Company and ABC Company RSU (separate securities) but with the same stock symbol. This will keep the value of the RSU up to date with the current price of the stock.
    3. When I received a grant I would add shares (add shares transaction) of the ABC RSU to the account. This way I knew how many shares I had at any given time.
    4. Then I would enter reminder transactions corresponding to vesting dates.
    5. When RSUs vested I would remove the number of vested RSUs via remove shares transactions.
    6. When I received my paycheck statement related to the vesting of the RSUs I would transfer the cash amount related to the vesting from the paycheck to the brokerage account holding the stock. You'll likely need to add the income as an taxable income item to your paycheck in Quicken so that you can transfer that same amount to the investment account.
    7. Buy the actual shares of ABC Company (not the RSU shares) via a buy transaction.
    8. If you use share withholding as your tax payment then you need to sell quantity of shares (at the same price as you bought them at) necessary to cover the tax and then transfer that amount (via the same paycheck as in #6) back to your paycheck to be used to cover the taxes withheld.

    For #6 and #8 your employer should provide you all the information related to purchase price, amount sold for taxes, etc. They probably won't have it available on the exercise date so you may need to retroactively enter the information when you get it.

    If you follow this it will allow you to know how many RSUs you have at any given time. Convert RSUs to actual stock when vesting occurs. Address the value of the exercise from a tax perspective (i.e. income on your w2) and keep the gain/loss accurate for the exercised shares.

    Not the easiest process but at least you can keep everything in order from an accurate financial perspective.

    The short answer to your question on 3 is yes, add the total shares granted of ABC Company RSU on the grant date.  I'm not sure how else you might be interpreting that step?  On step 4 in in the brokerage account register if you drop down the Action field you'll see a Reminder transaction where you can add a memo for the vesting date.  May be obvious but in step 5, also delete the corresponding reminder transactions corresponding to the vesting of x shares.
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