Figma IPO Tax Guide: RSUs, ISOs, and Equity Planning for Employees

If you work at Figma and hold equity, the upcoming IPO isn’t just company news; it’s a life-altering financial moment. One that could turn your paper gains into real dollars… and real tax bills. Whether you hold RSUs, stock options, or early-exercised shares, this is your opportunity —but only if you plan correctly.

At VIP Wealth Advisors, we specialize in helping tech professionals at pre-IPO and newly public companies, such as Figma, navigate this complex transition with precision and expertise. In this guide, we'll walk you through what to expect, what mistakes to avoid, and how to strategically map out your next moves.

📌 Table of Contents

1. What Figma’s IPO Means for You
2. Know Your Equity: RSUs, ISOs, NSOs, and Early Exercises
3. The Tax Traps Most Employees Miss
4. The Timing Game: Lockups, Liquidity, and Vesting Schedules
5. Should You Sell Immediately or Hold?
6. What to Do Now (Not Later)
7. Why DIY Planning Is Risky
8. How We Help Pre-IPO Employees Build a Tax-Smart Strategy

Figma has officially filed its S-1 and is expected to go public on the NYSE under ticker "FIG" by late July or early August 2025. The IPO could value the company as high as $16.4 billion, with co-founder Dylan Field personally selling over $65 million worth of shares.

If you've been granted equity at any point—whether RSUs, ISOs, NSOs, or even SAFE/seed shares—this event could create liquidity, tax exposure, and wealth… all at once.

This is your chance to turn your compensation into generational wealth—if you play it smart.

Before you can plan, you need to understand what you actually own.

• RSUs (Restricted Stock Units): Taxed as ordinary income at vesting, typically triggered by the IPO ("double-trigger" RSUs).
• ISOs (Incentive Stock Options): Can qualify for favorable long-term capital gains treatment—but watch out for AMT (Alternative Minimum Tax).
• NSOs (Non-Qualified Stock Options): Taxed at exercise as ordinary income on the spread.
• Early Exercised Shares: These may qualify for QSBS (Qualified Small Business Stock) treatment if you filed your 83(b) election on time.

Figma employees may hold a mix of these. Each has drastically different tax implications—and timing matters.

This is where most tech professionals often fall short.

❌ Mistake #1: Selling RSUs Without Planning for Withholding Gaps

When RSUs vest, the company usually withholds 22%–37% in taxes. But if you're in a higher bracket (which many Figma employees are), you may owe more than what was withheld—sometimes by tens of thousands.

❌ Mistake #2: Triggering AMT on ISO Exercises

ISOs are stealthy. They don’t create regular tax liability at exercise, but they do create AMT liability. In 2025, proposed tax reforms are expected to change how the AMT applies. One misstep, and you could owe five figures with no liquidity to pay it.

❌ Mistake #3: Ignoring QSBS Eligibility

If you’ve held shares for five years and they meet specific criteria, you may be able to exclude up to $10M in gains from federal tax. However, if you sell too early or fail to track holding periods, you may forfeit this significant benefit.

Even if Figma prices this month, your liquidity may be delayed:

• Lock-up period: Typically 180 days following the IPO. You may not be able to sell immediately.
• Double-trigger RSUs: Many RSUs granted before an IPO require a second trigger (such as the IPO) and vest over time.
• Liquidity events: Internal tenders or secondary sales may happen—but often only for accredited investors and under specific terms.

Planning around when you can sell is just as important as deciding whether to sell.

This is the million-dollar question—literally.

Reasons to Consider Selling:

• You need cash for taxes
• You’re overconcentrated in Figma stock
• You want to diversify and reduce risk
• You’re eligible for QSBS treatment now

Reasons to Consider Holding:

• Long-term belief in Figma’s growth
• Qualified for long-term capital gains (1+ year holding)
• Strategic tax deferral

There’s no one-size-fits-all answer, but there is a correct answer for your specific situation. And we help clients model it out in detail.

Time is your biggest asset—or your most significant liability. Here’s what to do now:

Here’s the brutal truth: Most CPAs don’t understand equity comp. And most financial advisors don’t do taxes.

We’ve reviewed hundreds of tax returns from Big Tech employees with glaring errors—overpaid taxes, missed AMT credits, forfeited QSBS benefits, and worse.

Your financial future is too important to leave to generic software or advisors who treat equity like an afterthought.

At VIP Wealth Advisors, we’re credentialed tax professionals and fiduciary financial planners. We combine both to give you a strategy that’s:

• Tax-smart
• Investment-aligned
• Legally optimized
• Customized to your goals

We offer a limited number of Pre-IPO Equity Strategy Sessions for employees preparing for liquidity events, such as this one.

Here’s what we cover:

• Equity grant analysis and tax classification
• IPO timing scenarios and sale strategies
• AMT and Form 6251 projections
• QSBS qualification and exit planning
• Custom liquidity roadmap based on your financial goals

We don’t just hand you a strategy and wish you luck. At VIP Wealth Advisors, we handle your tax planning and tax preparation in-house—so there’s no disconnect between your financial plan and your tax return. We also coordinate with your estate attorney and manage your investment accounts directly, ensuring every part of your financial life is working in sync.

Figma’s IPO could be the most financially critical moment of your life. But without a clear strategy, it could also lead to:

• Surprise six-figure tax bills
• Missed wealth-building opportunities
• A portfolio dangerously overconcentrated in one company

The smartest employees will act before the IPO, not after. That’s how real wealth is built—quietly, strategically, and intentionally.

Don’t just cross your fingers and hope it works out. Plan for it. And if you want help, we’re here to guide you through every step!