Retirement Tax Services Podcast Getting killed on taxes: Equity comp edition with Russell Kroeger
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Jun 9, 2025 In this discussion, Russell Kroeger, Founder and CEO of Trayecto, shares his expertise as a financial advisor and tax professional. He dives into the complexities of equity compensation, emphasizing the importance of understanding tax implications for various types. Russell reveals common pitfalls that lead to clients facing hefty tax burdens and stresses the need for clear communication between advisors and clients. He also discusses valuable resources for navigating these challenges and offers strategies to optimize tax outcomes for those receiving equity-based compensation.
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Clients Misidentify Equity Types
- Clients often misidentify their equity compensation types, e.g., saying they have ISOs instead of RSUs.
- Having the actual documents is critical for accurate tax advice and planning.
Use Precise Language to Educate
- Use precise language about equity comp types and tax details with clients to align understanding.
- Educate clients to enable clear communication and manage expectations effectively.
Manage Underwithholding Early
- Start by understanding the tax underwithholding gap between 22% and the client's marginal tax rate.
- Help clients make estimated tax payments or adjust withholdings to avoid surprises at tax time.