Reddit (RDDT) RSU sell-vs-hold
Calculator · free · no signup · RDDTSell at vest or hold? Compare after-tax payout from selling Reddit RSUs at vest vs. holding through the LTCG cliff at 12 months.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
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 RDDT today.
Most diversification frameworks would advise against a purchase that size in a single name; the right answer depends on your conviction in RDDT. 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.
Request beta access →About Reddit
Reddit (RDDT) is a public Consumer Internet company, incorporated in Delaware and headquartered in San Francisco, CA. IPO'd Mar 21, 2024.
Last close: $175.39 per share (as of 2026-06-16).
Equity grants at Reddit typically include incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs).
Reddit is an American proprietary social news aggregation and forum social media platform. Registered users submit content to the site such as links, text posts, images, and videos, which are then voted up or down by other members. Posts are organized by subject into user-created boards called "subreddits". Submissions with more upvotes appear towards the top of their subreddit and, if they receive enough upvotes, ultimately on the site's front page. Reddit administrators moderate the communities. Moderation is also conducted by subreddit-specific moderators, who are unpaid volunteers. It is operated by Reddit, Inc., based in San Francisco.
Source: Wikipedia (CC BY-SA 4.0)
Steve Huffman and Alexis Ohanian launched Reddit from Y Combinator's inaugural 2005 batch, with Aaron Swartz joining months later via the Infogami merger. Conde Nast bought the site in 2006 for roughly $10-20M, then parent Advance Publications spun it back out as an independent subsidiary in 2011. Headquartered in San Francisco, the company runs community-driven discussion forums and licenses its conversation archive to Google and OpenAI for AI training. Reddit went public on NYSE in March 2024 under ticker RDDT. Daily active uniques hit 121.4M and weekly actives reached 471M by 2025.
Sources: en.wikipedia.org · cjr.org
Equity comp at Reddit
- RSUs use single-trigger vesting: shares become yours as each portion vests on schedule, and the value is taxed as ordinary income at that point. No IPO or acquisition is required.
Researched 2026-05-07.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Reddit.
Reddit (RDDT) 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 Reddit (RDDT) RSUs vesting at $175.39 per share is $87,695 of ordinary income on vest day. After roughly 32% combined federal + state + FICA (~$28,062), the post-tax share value is ~$59,633. 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 Reddit tools → · Use the generic RSU Sell-vs-Hold Calculator for any company.
Reddit equity questions
- Should I sell or hold my Reddit RSUs at vest?
- Reddit 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 Reddit grant ISOs, NSOs, or RSUs?
- Equity compensation at Reddit typically takes the form of incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise. Restricted stock units are taxed as ordinary income when they vest.
- Do Reddit RSUs use double-trigger vesting?
- No. Reddit restricted stock units (RSUs) use single-trigger vesting: each tranche becomes yours as it vests on schedule, taxed as ordinary income at that point, with no liquidity event required.
One piece of the puzzle.
OptionsAhoy plans your Reddit equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.