What happens to your RSUs and ESPP when you leave a US job

Equity pay is the part of a US compensation package most affected by a leaving date. Restricted stock units (RSUs) and employee stock purchase plans (ESPPs) both depend on dates in your plan, and a departure that lands a few weeks too early can cost real money.

This guide explains what the Wind-Down Planner assumes, what to look up in your own plan, and what to consider for the shares you keep. The planner's equity items come from your employer's plan, not from a statute, so there is no single official page to cite for them. The sections on shares you keep do cite official sources.

RSUs: the vest date and your last working day

The planner assumes that RSUs vesting after your last working day are forfeited. That is an assumption about a typical plan, not a rule of law. Your grant agreement and plan document decide what actually happens, so read them for the exact wording on termination.

The planner marks this as a cliff: a date after which something is lost. It adds up the shares that vest after your last working day, multiplies by the price per share you entered, and shows the result as the amount you could lose.

If you are leaving by choice, one lever is the date itself. The planner points out when moving your last working day to a vest date keeps that vest, as long as the vest falls on or before the day you leave. If a vest falls after you leave, the planner says so and does not suggest a date.

If you are leaving after a layoff

When employment ends without a plan, you cannot move the date. In that case the planner tells you to check your severance terms for acceleration, which means vesting some shares early. It still assumes that anything vesting after your last working day is forfeited, so ask your employer for the terms in writing before you rely on a different outcome. The job-loss version of the planner starts from your last working day.

ESPP: the purchase date and the discount

An ESPP collects your contributions between purchase dates and then buys shares, usually at a discount. The planner's rule for a purchase date that falls after your last working day is: contributions are usually refunded, but the purchase discount is lost.

For a layoff, the planner adds that you should check your plan document for what happens on termination.

The planner estimates the discount you would lose as a minimum: contributions multiplied by the discount, divided by one minus the discount. It ignores any lookback feature in your plan, so the real figure could be higher.

The shares you keep

Shares that vest on or before your last working day are yours. A few things follow from holding US stock after you leave.

Your broker. The planner's logistics item says to move to a broker that accepts Indian-resident customers before you change your address, because transfers usually take a week or more. If your broker already accepts Indian residents, update the address after you arrive.

US capital gains. IRS Publication 519 says that, as a nonresident, US capital gains on stocks are generally not US-taxed if you are in the US fewer than 183 days that year. The planner suggests considering the timing of sales of appreciated US stocks inside your RNOR window and keeping the proceeds outside India until the sale is complete. The RNOR capital gains guide covers the Indian side.

US estate tax. If you are a nonresident and not a US citizen when you die, stock of US corporations is a US-situated asset. Your executor must file Form 706-NA if your US-situated assets are worth more than $60,000. The IRS list of estate and gift tax treaties does not include India. The guide to long-stay US thresholds discusses the domicile side.

A worked example

Take a couple who arrived in the US about 8 years ago and plan to leave in 24 months, on 9 October 2028. Their last working day is also 9 October 2028. They own a home and a 401(k), and have two RSU vests and one ESPP purchase still to come.

The August vest is worth 100 times $400, which is $40,000. It vests before they leave, so they keep it.

The November vest is also $40,000, and it vests after the last working day. The planner shows $40,000 as lost. Because it falls after the departure date as well, moving the last working day cannot save it, and the planner marks it as a vest that happens after you leave.

The ESPP purchase on 30 November 2028 refunds their $12,000 of contributions, but the discount is lost. The planner's minimum estimate is $12,000 times 15%, divided by 85%, which is about $2,118.

The shares they keep are the 100 vested in August, worth $40,000 at the price they entered. That is under the $60,000 Form 706-NA threshold, but the threshold counts all US-situated assets, not only these shares. If they also hold a brokerage account, the planner adds its value, less planned sales, to the total.

The only way to keep the November vest or the ESPP purchase would be to leave later than those dates, which means a different departure date. That is a trade-off with the rest of the plan, such as the home sale and their Social Security credits.

What to check in your own plan

• What your grant agreement says about vesting after your last working day.
• Whether your severance, if any, accelerates vesting.
• When your next ESPP purchase date falls, and what your plan says about contributions on termination.
• Whether your broker accepts Indian-resident customers.

Next step

Enter your vest and purchase dates in the Wind-Down Planner to see which fall after your last working day and what you could lose. If you have already lost your job, use the job-loss version. Confirm with a cross-border CPA.

This is a planning timeline, not tax, legal or immigration advice. Rules change; each item links to its official source and shows when it was last checked.

Sources

Last checked: 9 October 2026.

• IRS, Publication 519: https://www.irs.gov/publications/p519
• IRS, Some nonresidents with US assets must file estate tax returns: https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns
• IRS, Estate and gift tax treaties (international): https://www.irs.gov/businesses/small-businesses-self-employed/estate-gift-tax-treaties-international
• Your employer's equity plan and your ESPP plan document: no public page; read your own copy.