When RSUs vest, Social Security counts the value as wages against the earnings test, withholding $1 in benefits per $2 earned above $24,480 in 2026.
Selling previously vested shares generates capital gains, which Social Security ignores under the earnings test but which can still trigger higher Medicare premiums two years later.
Workers should review their full RSU vesting schedule before claiming Social Security early, since large scheduled vests can eliminate months of benefit checks.
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Billionaire entrepreneur Mark Cuban has long advocated for workers owning a stake in the companies they work for, and the idea is gaining traction beyond one sector. Retail, healthcare, logistics, and manufacturing employers now hand out equity as part of compensation. That is a good thing. It also creates a small trap for anyone claiming Social Security before full retirement age (FRA).