Honeywell Aerospace (HONA) RSU sell-vs-hold
Calculator · free · no signup · HONASell at vest or hold? Compare after-tax payout from selling Honeywell Aerospace RSUs at vest vs. holding through the LTCG cliff at 12 months.
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Your vest
Tax inputs
Hold strategy
Best after-tax payout — at year 1 yr
$47,709
Sell + invest wins by $4,981 over Hold 1 yr.
Estimates only. Not financial advice.
Heads-up: under-withholding. Your employer withholds federal tax at the IRS supplemental rate (22.0% on this vest, ≈ $17,600). Your marginal federal rate on this vest is 32.7%, owing $26,171. Expect to settle the $8,571 gap at tax time.
The hidden purchase
Tax was paid at vest either way. Holding is mathematically equivalent to taking $44,509 in after-tax cash and buying $44,509 of HONA today.
Most diversification frameworks would advise against a purchase that size in a single name; the right answer depends on your conviction in HONA. Holding past one year converts the gain to LTCG.
Sell + invest
Best payout| Vest value (shares × price) | $80,000 |
| Federal | |
| State | |
| Medicare | −$1,160 |
| Additional Medicare | −$720 |
| Market gain over 1 yr at 10.0% | $4,451 |
| Cap-gain tax on diversified gain — LTCG (federal + state + NIIT) | −$1,251 |
| Net at year 1 yr | $47,709 |
Sell every share at vest; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.
Hold 1 yr
| Vest value (shares × price) | $80,000 |
| Vest tax (federal + state + FICA) | |
| Net at year 1 yr | $42,728 |
Sold 444 shares to cover vest tax (net-settled); kept 556 shares 1 yr to qualify for long-term capital gains.
Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're still employed at vest.
Both columns are stated in year-1 yr dollars. The sell side compounds at the market return; the hold side compounds at your single-stock expected return after a 20% volatility drag.
Estimates only. Assumes net-settled (sell-to-cover) vesting; double-trigger and pre-IPO RSUs are out of scope. Excludes multi-state moves, AMT interactions on other equity, and 83(b) elections. Not financial advice.
You evaluated one RSU vest. The beta plans every vest of every grant across years, with concentration and AMT in the loop.
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About Honeywell Aerospace
Honeywell Aerospace (HONA) is a public Aerospace/Defense company, incorporated in Delaware and headquartered in Phoenix, AZ.
Last close: $154.97 per share (as of 2026-10-01).
Equity grants at Honeywell Aerospace typically include restricted stock units (RSUs).
Honeywell Aerospace Inc. is an independent American manufacturer of aircraft engines, avionics, auxiliary power units (APUs), and other aviation systems. Headquartered in Phoenix, Arizona, it operates as one of the world's largest standalone tier-1 aerospace and defense suppliers. The company generates approximately $15 billion in annual revenue from a balanced portfolio of commercial and military defense contracts.
Source: Wikipedia (CC BY-SA 4.0)
Honeywell separated its aerospace division in 2026, creating a standalone supplier of avionics, engines, and auxiliary power units to commercial and defense aircraft manufacturers. Aerospace content is specified into airframes that stay in production for decades, so a design win produces original equipment revenue and then decades of higher-margin spare parts. Aftermarket demand follows flight hours rather than aircraft deliveries. Employees carried Honeywell awards through the separation on conversion terms set at the spin. Headquarters are in Phoenix.
Sources: sec.gov · en.wikipedia.org
Equity comp at Honeywell Aerospace
- On June 29, 2026, Honeywell International completed a tax-free spin-off of its Aerospace segment as Honeywell Aerospace Inc. (Nasdaq: HONA), distributing one HONA share for every two Honeywell shares held. Under the companies' Employee Matters Agreement, outstanding Honeywell restricted stock units (RSUs, time-based grants promising future shares) and PSUs (performance stock units, which vest based on performance targets) held by Aerospace employees were converted into equivalent HONA awards, generally continuing on their original vesting schedule and grant date rather than accelerating. A subset of PSUs that had been tied to completion of the spin-off itself as a performance condition vested immediately at close, while other converted awards continue vesting through 2027 and beyond. Honeywell (renamed Honeywell Technologies) also completed a 1-for-2 reverse stock split around the same time, and outstanding award share counts were adjusted accordingly.
- Early exercise is not allowed: you have to wait for shares to vest before you can buy them.
- RSUs use double-trigger vesting. Two things must both happen before the shares are yours: (1) the normal time-based vesting completes, and (2) the company has a liquidity event (an IPO or an acquisition). Until both happen, you do not yet own the shares and you do not owe tax on them.
Sources: honeywell.com · sec.gov · sec.gov · sec.gov
Researched 2026-08-23.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Honeywell Aerospace.
Honeywell Aerospace (HONA) RSUs vest as ordinary income at the price on vest day. The decision is whether to sell at vest and reinvest, or hold the shares through the 12-month LTCG cliff. This calculator runs both paths through the same after-tax math so you can compare like-for-like.
Example: 500 Honeywell Aerospace (HONA) RSUs vesting at $154.97 per share is $77,485 of ordinary income on vest day. After roughly 32% combined federal + state + FICA (~$24,795), the post-tax share value is ~$52,690. Holding 12 months for long-term capital-gains treatment then only matters for the price change between vest and sale; the ordinary income at vest is already locked in. The calculator runs both paths through the same after-tax math.
All Honeywell Aerospace tools → · Use the generic RSU Sell-vs-Hold Calculator for any company. Diversifying multiple RSU lots? See the lot-by-lot sell order →
Honeywell Aerospace equity questions
- Should I sell or hold my Honeywell Aerospace RSUs at vest?
- Honeywell Aerospace restricted stock units (RSUs) are taxed as ordinary income on their value at vest whether or not you sell. The only open decision is what to do with the shares afterward: sell at vest and reinvest, or hold past twelve months for long-term capital-gains treatment on any further gain. The calculator above runs both paths through the same after-tax math so you can compare them directly.
- Does Honeywell Aerospace grant ISOs, NSOs, or RSUs?
- Equity compensation at Honeywell Aerospace typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Does Honeywell Aerospace allow early exercise of stock options?
- No. Honeywell Aerospace requires options to vest before you can exercise them, so the holding-period clock for long-term capital-gains treatment starts as each tranche vests and you exercise it.
- Do Honeywell Aerospace RSUs use double-trigger vesting?
- Yes. Honeywell Aerospace restricted stock units (RSUs) vest only when two things both happen: the time-based schedule completes, and the company has a liquidity event such as an initial public offering (IPO) or an acquisition. Until both occur you do not own the shares and owe no tax on them.
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