When does Amazon 401k match vest? How much to put?
I didn’t put anything to 401k when my employer didn’t match. I know amazon does 50% of your contribution (up to 4% of TC or Base???) I used to think I’ll pay all the tax and self manage an investment account. But now I’m rethinking my strategy, should I put more in 401k for any reasons? But if I want to buy a property, early withdraw of 401k occurs penalty. What do you think?
They assume you leave before it is fully vested.
Employer contribution vests after 3years , your own contribution is always yours doesn’t need vesting. Not contributing to 401k when employer matches is like leaving free money on the table. If you really don’t care about the tax implication etc at least put your employer match which I think is 4% of base.
Can you share more on the tax implications & long term benefits? I know it’s pre-tax, but I always thought when you get old and use, it’ll be taxed anyway... And if I need money to buy a house or any other reasons, there’s penalties for early takeout.
Your understanding of tax implications are true. When you take out money after 60 that is treated as your income so depending on what your income at that age you will be taxed. This money is basically tax deferred . However if you think about tax you pay now, growth rate of money etc you will mostly gain than loose by saving in 401k. I personally add money in 401k because I want to max employer contribution and I can live without my portion of the contribution for foreseeable future.
3 years? Ones a trillion dollar company trying to stiff employees on 401k matches? that’s sad.
Amazon is all about frugality. 😞
Is 3 year vesting prorated or you loose all matching if leave before 3yrs
Lose everything if you leave before
Think it fully vests after 3 years. Not sure about if it’s on your base or TC; would assume it’s on anything that is paid out as salary (aka salary and bonuses)