Amazon 401k has a 3y vesting cliff

Amazon / Product
Oh🦀🦀🦀!

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Apr 5 55 Comments

I'm transferring my money out of my Amazon 401k into a Rollover IRA and the gentleman at Fidelity informed me that my balance is not my balance. Because I stayed less than 3 years, I don't get any of Amazon's contributions.

The average Amazon tenure is 18 months; virtually none of their hires are getting the 401k match.

Have you heard of this happening elsewhere? Or is this just 🍌🍌🍌

#401k #IRA #Benefits #caustic #toxic #culture #ThisFeelsIllegal #comp #compensation #salary

Yoe: 8
TC: $300 (non-tech)

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TOP 55 Comments
  • Google
    DefaultNam

    Go to company page Google

    DefaultNam
    Pretty weird that you all didn’t realize this until you were leaving the company. Do you not read anything about your investments or retirement plans? This isn’t exactly a secret; Amazon tells you this about their 401k when you sign up.
    Apr 5 5
  • Amazon
    IVni77

    Go to company page Amazon

    IVni77
    It’s not a cliff, it’s the minimum period you stay for your employer match to be vested. Many companies have it and ours is not the most employee friendly terms for this.
    Apr 5 4
    • HomeStreet
      Madlad

      HomeStreet

      Madlad
      Hardly any companies have a shit 3 year vesting cliff like that. It’s a horrible Amazon policy and one that makes me want to avoid working there.
      Apr 5
    • Oracle
      dEkd65

      Go to company page Oracle

      dEkd65
      So you work at HomeStreet lol?
      Apr 5
  • Microsoft / Eng
    AlexMS

    Go to company page Microsoft Eng

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    General Motors
    AlexMS
    Microsoft and Google don't vest 401k
    Apr 5 7
  • Twitter
    war-monger

    Go to company page Twitter

    war-monger
    Very toxic, not normal.
    Apr 5 0
  • Amazon
    umama

    Go to company page Amazon

    umama
    Yup your 401k company match is not vested until you reach the tenure requirement. Absolutely stupid but you can thank HR for that
    Apr 5 3
    • So that with their RSU vesting schedule it would just be dumb to leave at 3 years and miss out on that last year too. Damn they really try to suck you in. Seems like leaving at 1-2 years is the sweet spot for Amazon and don't include 401k match in your decisions.
      Apr 6
    • Amazon
      umama

      Go to company page Amazon

      umama
      Their matching % is 🥜 anyway so you’re not missing out on much
      Apr 6