Concentrated Equity & Portfolio Architecture
RSU Hold vs. Sell & Mega Backdoor Roth Simulator
2026 IRS statutory model quantifying employer concentration risk, double-jeopardy exposure, and $72,000 Section 415(c) shelter.
5-Year Wealth Advantage
-$18,778
Mega Backdoor Roth Waterfall vs. Holding
Concentration Exposure
53.7%
Of household liquid net worth in 1 stock
Double-Jeopardy Score
90 / 100
Income + equity correlation penalty
Breakeven Company Return
8.2% / yr
Min growth needed to justify concentration
1. RSU Vesting & Horizon
2. Concentration & Double Jeopardy
3. 2026 Tax & Mega Backdoor Roth
Available After-Tax 401(k) Room:$39,500/yr
| Metric (5 Yrs) | Auto-Sell & Index | Hold Company RSU | Mega Backdoor Roth |
|---|---|---|---|
| Vested Gross Inflow | $600,000 | $600,000 | $600,000 |
| Vest Ordinary Income Tax | -$222,000 | -$222,000 | -$222,000 |
| Net Invested Principal | $378,000 | $378,000 | $378,000 |
| Exit Capital Gains Tax | -$24,705 | -$34,418 | -$14,597 |
| Net Take-Home Wealth | $457,096 | $488,194 | $469,416 |
| Double-Jeopardy Risk Level | Zero Risk | Critical | Zero Risk + Sheltered |
The RSU Vesting Fallacy
Because RSUs are taxed as ordinary earned income on vest date, holding company stock after vesting is mathematically identical to receiving a cash bonus and buying company shares on the open market at today's peak price. If you wouldn't take cash out of your checking account to buy your company's stock today, auto-selling and routing the proceeds into a broad index or Mega Backdoor Roth is mathematically dominant.