11 Essential Year-End Money Moves for Tech Employees With RSUs

October is National Financial Planning Month.  Most posts you’ll read this month say the same things.  Make a budget.  Don’t panic.  Diversify.

All fine advice.  But if you work in tech and part of your pay shows up as company stock, October brings a handful of real deadlines and decisions.  Open enrollment.  Fourth-quarter vests.  Year-end tax moves that disappear on December 31.

Here’s the checklist I walk through with clients this time of year.  Not every item will apply to you.  Your own goals, timeline, and comfort with risk decide which ones matter.

What should tech employees review during open enrollment?

Most large employers run benefits enrollment in the late fall.  Whatever you pick usually sticks for all of next year.  So it’s worth 30 minutes of your attention instead of clicking “keep my current elections.”

Should you max out your HSA in 2027?

The IRS already set the 2027 limits in Revenue Procedure 2026-24.  You can put in up to $4,500 with self-only coverage or $9,000 with family coverage.  If you’re 55 or older, you can add another $1,000.

You need a high-deductible health plan to qualify.  If you have one, the HSA is about as good as tax breaks get.  Money goes in pre-tax, grows tax-free, and comes out tax-free for medical costs.  A lot of people treat it like a medical retirement account and pay current bills out of pocket.

Did your dependent care FSA limit go up?

It might have.  Starting in 2026, the federal limit for a dependent care FSA rose from $5,000 to $7,500 per household.  That’s the first increase since 1986.

The catch is that your employer has to choose to offer the higher amount.  Check your enrollment screen.  And remember this account is use-it-or-lose-it, so only elect what you’re confident you’ll spend on daycare, preschool, or after-school care.

Does your 401(k) plan allow a mega backdoor Roth?

Some tech employers let you make after-tax 401(k) contributions and convert them to Roth.  Some don’t.  It depends entirely on your plan.

Open enrollment is a good time to dig up your plan documents and find out.  If your plan allows it, this can be one of the biggest Roth savings opportunities available to high earners.  Here’s why the mega backdoor Roth often comes before a taxable account.

Will your RSU withholding cover your taxes this year?

Probably not, if your income is high.  This is the most common tax surprise I see.

When RSUs vest, most employers withhold federal tax at a flat 22%.  That rate jumps to 37% only on supplemental pay above $1 million for the year.  The problem is that a lot of tech households land in the 32%, 35%, or 37% bracket.  For a single filer in 2026, the 32% bracket starts at roughly $201,775 of taxable income.

Here’s a simple example.  Say $100,000 of RSUs vest and all of it lands in the 35% bracket.  Your employer withholds $22,000.  The federal tax on that income is about $35,000.  That’s a $13,000 gap you’ll owe in April.

October still gives you time to close that gap.  A few options to look at:

• Elect higher withholding on vests.  Some plans allow it and some don’t.  Check yours.
• Increase withholding on your regular paycheck through a new W-4.  The IRS treats withholding as paid evenly through the year, which can help with underpayment penalties.
• Make an estimated payment by January 15, 2027.

To avoid an underpayment penalty, you generally need to pay in at least 90% of this year’s tax or 100% of last year’s.  That second number becomes 110% if last year’s adjusted gross income was over $150,000.  The details are in IRS Publication 505.

For a deeper walk-through, read why 22% RSU withholding often isn’t enough in Washington.

Which year-end tax moves have a December 31 deadline?

These three close when the year does.  After that, you wait for 2027.

Tax-loss harvesting, and the RSU trap nobody mentions

If you have investments sitting at a loss in a taxable account, selling them can offset gains you’ve taken this year.  Losses beyond your gains can cut up to $3,000 of regular income.  Anything left over carries forward to future years.

Here’s the trap.  The wash sale rule blocks the loss if you buy the same stock within 30 days before or after the sale.  An RSU vest or an ESPP purchase counts as buying.  So if you sell company shares at a loss two weeks before a vest, the IRS can disallow that loss.  It gets added to the cost of the new shares instead of helping you this year.  IRS Publication 550 covers the rule.

Map out your vest and ESPP purchase dates before you sell anything at a loss.

Are you on track to max out your 401(k)?

For 2026, you can defer up to $24,500.  If you’re 50 or older, you can add $8,000.  If you’re 60 to 63, that catch-up rises to $11,250.

Your deadline isn’t really December 31.  It’s your last paycheck of the year.  Look at your year-to-date total now while there are still enough paychecks left to adjust.

One new wrinkle for 2026.  If you’re 50 or older and earned more than $150,000 in Social Security wages from your employer in 2025, your catch-up contributions now have to go in as Roth, not pre-tax.  That means a slightly smaller paycheck than you might expect.  Check a recent pay stub to make sure the money is landing where you think it is.  Not sure which bucket makes sense for you?  Here’s how to think through Roth vs. traditional 401(k).

Giving to charity? The 2026 rules changed

The One Big Beautiful Bill Act changed charitable deductions starting this year:

• If you itemize, only the giving above 0.5% of your adjusted gross income counts.  At $400,000 of income, the first $2,000 you give doesn’t count toward your deduction.
• If you’re in the 37% bracket, your deduction is capped at a 35% benefit.
• If you take the standard deduction, you can now deduct up to $1,000 of cash gifts ($2,000 if married filing jointly).  Gifts to a donor-advised fund don’t qualify for this one.

For tech employees who give, donating company shares you’ve held more than a year can make sense.  You generally deduct the full market value and never pay capital gains tax on the growth.  That deduction is usually limited to 30% of your adjusted gross income.  Some people “bunch” several years of giving into one year with a donor-advised fund to clear the new floor.  IRS Publication 526 has the rules.

How does Washington’s capital gains tax affect selling company stock?

Washington doesn’t have an income tax.  It does tax large long-term capital gains.

Here’s how it works, per the Washington Department of Revenue:

• The first chunk of long-term gains each year is exempt.  That standard deduction was $278,000 for 2025 and adjusts for inflation each year.
• Gains above that are taxed at 7%.
• Taxable gains above $1 million are taxed at 9.9%.
• Married couples share one deduction.  You don’t each get your own.

RSUs you sell right at vest usually have little or no gain, so this tax rarely touches them.  It’s the shares you’ve held for years that can trigger it.

Two October-friendly ideas.  First, if you’re planning a big sale, splitting it between December and January puts it in two tax years with two deductions.  Second, starting with tax year 2026, Washington lets you prepay the capital gains tax up to six months before it’s due.  For the April 15, 2027 payment, that window opens in mid-October.

For more ideas, see proactive ways to manage capital gains tax.

How much company stock is too much?

Q4 vests have a way of piling up quietly.  Say you have $300,000 in your employer’s stock and $800,000 in total investments.  That’s almost 40% of your money riding on one company.  The same company that also pays your salary.

A common rule of thumb is to take a hard look once any single stock passes 10% to 15% of your portfolio.  That’s not a rule that you must sell.  It’s a check-in point.  One approach some people use is deciding ahead of time to sell a set percentage at every vest, so the decision is made before emotions show up.

If you’re in an ESPP, it’s also a good month to check:

• When your next enrollment window opens, and whether you want to change your contribution.
• Holding periods on your current shares.  A “qualifying” sale requires holding at least two years from the offering start and one year from purchase.  Even then, the discount you got is always taxed as regular income.  What changes is how much of the gain gets taxed that way.

Two helpful reads: How much company stock is too much? and ESPP: sell immediately or hold?

What if the market is making you nervous right now?

Markets go up and down.  Headlines make it feel worse than it usually is.

Your plan should already account for rough stretches.  If it does, the best move is often the boring one.  Keep contributing, rebalance if things drift, and leave the rest alone.

The real shock absorber is cash.  If your household spends about $10,000 a month, six months of reserves is roughly $60,000.  Having that set aside means a market drop is something you watch, not something you have to react to.

Your October checklist: the quick version

• Review open enrollment instead of rolling last year’s choices forward
• Consider maxing the HSA if you have a qualifying health plan ($4,500 / $9,000 for 2027)
• Check whether your dependent care FSA now allows $7,500
• Find out if your 401(k) allows a mega backdoor Roth
• Estimate your RSU tax gap and adjust withholding or plan an estimated payment
• Map vest and ESPP purchase dates before harvesting any losses
• Confirm your 401(k) will hit your target before your last paycheck
• If you’re 50+ and earned over $150,000 in 2025, confirm catch-ups are going in as Roth
• Plan charitable gifts around the new 0.5% floor
• Check your company stock as a percentage of your total investments
• Make sure your emergency cash still matches your monthly spending

Frequently Asked Questions

Is 22% RSU withholding enough?

Often not for tech employees.  Employers usually withhold a flat 22% on RSU vests, but many tech households fall in the 32%, 35%, or 37% federal bracket.  The difference shows up as a tax bill in April unless you adjust withholding or make an estimated payment.

What are the 2027 HSA contribution limits?

The IRS set the 2027 HSA limits at $4,500 for self-only coverage and $9,000 for family coverage, plus an extra $1,000 if you’re 55 or older.  You need a qualifying high-deductible health plan to contribute.

Can an RSU vest trigger a wash sale?

Yes.  An RSU vest or ESPP purchase counts as buying shares.  If you sell company stock at a loss within 30 days before or after a vest or purchase, the IRS can disallow the loss and add it to the cost basis of the new shares.

Do I owe Washington capital gains tax when I sell RSUs?

Usually not if you sell at vest, because there’s little or no gain and any gain is short-term.  Washington’s tax applies to long-term gains above an annual standard deduction, which was $278,000 for 2025.  Shares held for more than a year with large gains are the ones to watch.

What is the new Roth catch-up rule for 2026?

If you’re 50 or older and earned more than $150,000 in Social Security wages from your employer in 2025, any 401(k) catch-up contributions you make in 2026 must go in as Roth.  Your regular contributions up to $24,500 can still be pre-tax.

Want a second set of eyes on your year-end plan?

Unleashed Financial is a fee-only fiduciary firm in Kirkland, working with tech professionals across the Seattle area.  Every recommendation starts with your goals and how much risk you’re comfortable taking.  If you’d like help working through this list, let’s talk.