The article explains that incentive stock options (ISOs) never count toward Social Security earnings, while nonqualified options and RSUs do because they are taxed as ordinary wages. With the 2026 Social Security wage cap at $184,500, a $2 million equity vest adds nothing for an engineer already earning above that threshold. Benefits are based on a worker's 35 highest-earning years, adjusted for inflation, while annual increases come from COLAs, projected at about 3.5% for 2027. However, selling option shares while collecting benefits can push combined income past $34,000 for single filers, making up to 85% of benefits taxable. The article also warns that exercising ISOs and holding the shares can trigger the alternative minimum tax on paper gains.
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