By Christian Campbell, Business Development Manager | Updated October 30, 2026

If part of your pay comes in company stock, December is a good time to look at the whole picture. Vesting dates, exercise decisions, and tax withholding can all land in the same year, and the choices you make before December 31 can affect what you owe in April. Some of the rules that affect equity compensation also changed for 2026.

Here’s a checklist to review with your tax professional before year-end.

1. List what vested and what’s coming

Start with a simple inventory: grants that vested this year, grants that will vest in the next 12 months, and any options you could exercise. Your company’s equity plan portal usually shows grant dates, vesting schedules, and expiration dates. Note any options that are close to expiring. Options that expire unexercised are generally lost.

2. RSUs: check whether enough tax was withheld

Restricted stock units are generally taxed as ordinary income when they vest, based on the share price that day. Employers often withhold federal income tax on that income at a flat supplemental rate of 22%, or 37% on supplemental wages above $1 million. If your actual tax rate is higher than 22%, you may owe more when you file. Reviewing this before year-end gives you time to adjust withholding or make an estimated payment.

3. Incentive stock options: watch the AMT

Exercising incentive stock options (ISOs) and holding the shares doesn’t create regular income tax at exercise, but the difference between the exercise price and the market value generally counts toward the alternative minimum tax (AMT).

The AMT rules changed for 2026. The exemption is $90,100 for single filers and $140,200 for married couples filing jointly. It now begins to phase out at $500,000 of income for single filers and $1,000,000 for joint filers, and it phases out faster than before. For some households, that means ISO exercises may trigger AMT at lower income levels than in recent years.

If you exercise ISOs and sell the shares in the same calendar year, the AMT adjustment generally doesn’t apply, but the gain is taxed as ordinary income instead. A tax projection before you exercise can show the trade-off.

4. Non-qualified stock options: plan the income

Exercising non-qualified stock options (NSOs) generally creates ordinary income equal to the spread at exercise, reported on your W-2 if you’re an employee. Spreading exercises across tax years, rather than exercising all at once, may help manage which tax bracket the income falls in.

5. Look at how much of your wealth is in one stock

Between vested RSUs, exercised options, an employee stock purchase plan and your 401(k), it’s easy to end up with a large share of your net worth in your employer’s stock. That ties both your paycheck and your savings to one company. Selling over time, using gains and losses to manage taxes, or setting a target for how much company stock to hold are a few ways people approach this. Each has trade-offs.

6. Mind trading windows and plans

If you’re an officer or have access to inside information, your company may restrict when you can trade. A Rule 10b5-1 trading plan, set up in advance with your company’s approval, may allow scheduled sales during blackout periods. These plans come with waiting periods before the first trade, so plan ahead.

Bringing it together

Equity compensation decisions touch taxes, cash flow, risk and long-term goals all at once. If you’d like help seeing how your grants fit into the rest of your plan, visit our Executives & Equity Compensation page or talk to an advisor on our Lake Norman team.

This information is educational and is not individualized investment, tax or legal advice, or a recommendation to buy, sell or hold any security. Inspire Advisors, LLC does not provide tax or legal advice; please consult a qualified tax professional and your company’s plan documents about your situation. Diversification does not ensure a profit or protect against loss. Investment advisory services offered through Inspire Advisors, LLC, an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Investing involves risk, including possible loss of principal.