Google - Signing bonus payback?
I put my signing bonus into 401k. If I leave within a year and have to pay back the bonus (as per the contract) can it be taken out of my 401k? Or would I have to go out of pocket? Is there a way to avoid the payback?
You will need to pay out of pocket
Well that was a heck of a gamble without understanding the ramifications!
They don’t care what you did with the money. They don’t want the exact same dollar bills back. Just the exact amount they gave you. You can take it out of your 401K to give back or you can pay from other sources.
Just tell the company f*** off and you will be fine. They won’t sue you.
After you submit notice, contact HR with the specific details. They almost certainly would deduct it out of pocket, but it doesn’t hurt to make sure. BTW I have never heard a single case of Google actually clawing back signing bonus, despite what the contract says.
How to make sure that sign on goes into 401k upon joining?
Yes, don't leave within an year.