Is Amazon offering mega backdoor for their 401K

Nov 30, 2019 16 Comments

Former Amazonian here - just read through the pamphlet of transitioning from Vanguard to Fidelity, did i read it right that Amazon is finally offering mega backdoor?

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TOP 16 Comments
  • Amazon
    sPIE23

    Go to company page Amazon

    sPIE23
    Yes. But it’s capped at 10% of salary for extra post tax contributions. So it’s not possible to hit the actual max, which is 55k or whatever
    Nov 30, 2019 2
  • VMware
    burned

    Go to company page VMware

    burned
    How about a little Google? Or is that now not allowed at amzn? https://thecollegeinvestor.com/17561/understanding-the-mega-backdoor-roth-ira/
    Nov 30, 2019 2
    • Amazon
      OMwD10

      Go to company page Amazon

      OMwD10
      Touche

      What is up with the aggressive attitude?

      The question is the chance for someone to explain it in a simple way so that others can benefit from it.
      Nov 30, 2019
    • Amazon
      readme.q

      Go to company page Amazon

      readme.q
      VMware employees are a bit touchy I see πŸ˜‚ not enough bananas 🍌 🍌 no doubt...
      I was looking for the shorter version then that it a good reputable source on the other side of the spectrum... but sure πŸ™ƒ
      Dec 1, 2019
  • VMware
    burned

    Go to company page VMware

    burned
    Few comments: you guys should Google what the mega backdoor is and then ask specific questions. You should also ask about deferred comp plan, some companies have them for all, some for VP or other higher levels only, some don't offer - similar to mega backdoor Ira. Next you and especially Amazon should calculate deferring your comp and living of selling long term rsus only. Can save a shit ton on taxes under the right circumstances... And please, only smart questions going forward 😜
    Dec 1, 2019 0
  • AT&T
    MsdR32

    Go to company page AT&T

    MsdR32
    Don't forget that amazon often doesn't let you max your elective deferral - you may have to get 3-8k returned because it failed the non discrimination rules.
    Dec 1, 2019 5
    • AT&T
      MsdR32

      Go to company page AT&T

      MsdR32
      Moreso than being a function of their workforce its their Frugality principal. If you give like 3% or match some small amount plans are exempt from the non discrimination rules.

      But amazon is too cheap to chip into workers 401ks enough.
      Dec 1, 2019
    • Amazon
      sPIE23

      Go to company page Amazon

      sPIE23
      Yeah, agreed. It’s a shitty benefit.
      Dec 1, 2019
  • Netflix
    nflxeng

    Go to company page Netflix

    nflxeng
    Does this mean that now amazon employee can put it 19.5 pre-tax into pretax 401k + 10% of their after tax into Roth?
    Jan 31, 2020 0