401k company match policies

Amazon
rASg00

Go to company page Amazon

rASg00
Oct 15, 2020 24 Comments

Can someone maximize 401k contributions only during last few months of the year and still get full company match available (of the base salary) or is it prorated and a only certain percentage of every paycheck ?

I know Amazon distributes company match across the year, no matter whether you maximize contributions in the first two months or spread it across the year. If you just contribute last two months, then you only get company match for those two months.

How is this done in other FAANG companies ?
(Asking for a friend moving to Facebook next month)

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TOP 24 Comments
  • Amazon has the weirdest 401k match policy. Doesn’t it also have to “vest” as well?
    Oct 15, 2020 6
  • Google / Eng
    rcb csk

    Go to company page Google Eng

    rcb csk
    For Google, the moment you contribute $1, Google contributes 50 cents. The contributions are done via paycheck. You decide when you want to contribute.
    Oct 15, 2020 5
  • Apple / Eng
    yuriy

    Go to company page Apple Eng

    PRE
    Amazon, Google
    yuriy
    What you wrote about Amazon is not quite right, there will be a "true up" company match contribution in March of next year, so you'll get your missing match. It vests after two or three years of service, depending on how you count.

    For Google, as others correctly wrote here, you get an instant match regardless of contribution amount, vesting immediately. It is common for people to max everything out in January-February with annual bonuses.

    With Apple, you only get a match up to a percentage of your salary in that specific paycheck. No match on bonuses, no "true up" contribution, you better set contributions up carefully into equal parts throughout the year, or you'll lose money. Vest is immediate, though.
    Oct 15, 2020 1
    • Amazon
      rASg00

      Go to company page Amazon

      rASg00
      OP
      I had contributed almost 12k by April last year thinking that Amazon would give the full 2% match and that money would grow for the rest of the year. However, it was not the case and 3 trouble tickets later, I was told by a Seattle based payroll/finance manager that Amazon spreads its match throughout the year. In fact the year before that, amazon failed to make the full 2% of my base pay match for 2018 and when I brought it up, I was told Amazon does an audit during March of every year, during which such mistakes are corrected.
      Oct 15, 2020
  • Amazon / Eng
    Mufasaa

    Go to company page Amazon Eng

    Mufasaa
    For msft, it doesn't matter when. You can contribute upto 65% of your salary and it will get matched at 50% rate regardless of what time of the year until you hit the cap.

    Technically you can join near the end of the year and still get the entire match for the year assuming you have room to contribute.
    Oct 15, 2020 1
    • Amazon
      rASg00

      Go to company page Amazon

      rASg00
      OP
      You phrased it better than me. This is what I was asking and if it is the same for FB. Some of the benefits in MSFT are really good - this match, free insurance, yearly cash bonus to name a few..
      Oct 15, 2020
  • In short nothing amazon does is normal
    Oct 15, 2020 2