Amazon 401k before 3 years

Facebook zevx21
Oct 22, 2018 19 Comments

I quit Amazon before 3 years. I'm not sure but I've heard I won't get any of Amazon's match in the 401k account.

I however still see Amazon's part on Vanguard except Vanguard calls it unvested when I am looking to transfer it to Fidelity.

Does anyone knows what happens to this money?

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TOP 19 Comments
  • Microsoft IEjP42
    You can’t transfer what isn’t yours!
    Oct 22, 2018 6
    • Amazon t6ty6
      It's yours on the earlier of your third year of service or the year you turn 65. This is an IRS definition defining one of the ways a 401k match can operate.

      So for most here, it's your 3rd year of service, using the IRS definition of a year of service which is any plan year in which you have at least 1000 hours of employment. So in actual calendar time somewhere between 2.5 and 3.5 years depending on what month you joined.

      Once it vests it's always vested, it's not a rolling thing. After 3yr all matches are immediately yours and before it vests only your contributions are yours.
      Oct 22, 2018
    • Facebook zevx21
      OP
      @t6ty6 I thought this was an Amazon thing not an IRS rule.
      Oct 22, 2018
    • Amazon t6ty6
      It's both. IRS defined different ways a 401k can be set up and Amazon picked this way. It's not the only way it can be done, but having picked this way it's IRS rules being followed.

      Amazon is somewhat constrained in the choices it can make by the fact that about 400,000 of our employees are low wage employees while the rest are highly compensated. This creates some issues that Facebook or other companies without hourly paid workers don't have with respect to certain IRS rules.
      Oct 22, 2018
    • Facebook zevx21
      OP
      Ah, got it.
      So since it's showing as unvested, I'm assuming there's absolutely nothing I can do to get it then?
      Including keeping the account open.
      Oct 22, 2018
    • Amazon t6ty6
      You'll lose it
      Oct 22, 2018
  • Facebook public
    Oh amzn. Welcome to fb!
    Oct 22, 2018 1
    • Facebook zevx21
      OP
      Haha!
      Oct 22, 2018
  • Intel Blasterask
    You lose it. Nothing is yours until it vests.
    Oct 22, 2018 0
  • Amazon nXMl77
    How many months did you work in each calendar year? Technically having worked 1000 hours, roughly 6 months counts as 1 year. Depending on when you joined and left, it vests between 2 years to 3 years since joining.
    Oct 22, 2018 6
    • Amazon quitterw
      1 year is 2080... So, 1k hours in 6 months is less than 40hr/week
      Oct 22, 2018
    • Amazon nXMl77
      Op: yes, I would assume so. What were your rough start and end dates?
      Oct 23, 2018
    • Facebook zevx21
      OP
      Stayed for about 1.5 years.
      Oct 24, 2018
    • Amazon nXMl77
      In that case, there is no way it got vested.

      I was talking about the possibility where you spent more than 2 but less than 3 years and it might have gotten vested depending on your start and end dates.
      Oct 24, 2018
    • Facebook zevx21
      OP
      Yeah I figured. I suppose I'll just transfer my money and close this account
      Oct 24, 2018
  • Google topCon
    Must be part of the frugality LP to screw you.
    Oct 22, 2018 1
    • Facebook zevx21
      OP
      Obviously. Every policy Amazon has is to save itself money.
      Oct 23, 2018

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