Goal - Get all of Amazon's match (I know it vests after 3 years) and max out on backdoor roth as well Amazon's 401k match is 2% (50% of 4% of base salary). Assuming a base salary of 200K, that comes to 4K. However, in order to get the whole of match amount, you'll have to pace your contributions to not contribute all of 20.5K before the match contribution. How do you time it such that you get the match and are also able to max out of backdoor roth (extra 36.5K to total to 61K)? Do you keep contributing towards pretax slowly and when all of the match is in (around year end) then do big after tax contributions? Is there a more equal weighted approach to this? tc - 400 #engineering #software #swe #amazon
You can put 20k in 1 month and get the full match. Source: i did it.
Are you sure? Won't they just match 50% of 4% of base salary? Assuming a base salary of 200K, per paycheck base salary would be ~7.7K (200/26). Now, 4% of 7.7K is 308$ and match would be 308/2 = 159$. What am I missing?
There's no way to game the system. 50% of 4% of base is correct. It's because this is offered for all warehouse workers so it can't offer better terms for corporate workers
Amazon 401k sucks.
2% of base is the maximum match. So if you put 20k in, you'll get the 2% of base.
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Wow, no true up feature, a 3 year vest, and only 2% match? That’s a pretty shitty 401(k) plan. I guess your approach is the best one. But really you should complain about it. Even most tier 2/3 companies have a better 401(k) plan.
It’s a shitty plan for just about any company. The only worse I’ve seen is from startups who often just have no match yet.