Amazon 401k Match

How We Work with Amazon Employees (Amazon 401k Matching, Amazon Financial Planning, Amazon RSU)  

With Atkinson Wealth Strategies being located here in the Pacific Northwest we have first hand experience in the massive growth of Amazon. With the stock price hitting record highs per share, many employees have started asking themselves if their investment strategy is right for them, and what they should be doing with their restricted stock units (RSUs).

Top questions that Atkinson Wealth Strategies receives from Amazon employees include:

  • How much should I contribute to my Fidelity Amazon 401(k) plan (Previously Vanguard)?
  • Is your new PCS (Personal Compensation Summary) lower or higher than expected?
  • What are the best investment options for me?
  • What kind of retirement plan is best for me? What benefits does Amazon offer?
  • How can I maximize my Amazon Restricted Stock Units (RSUs) in a tax-efficient manner?
  • What is an HSA? (Health Savings Account)
  • What is an FSA? (Flexible Spending Account)
  • I am not allowed to do an 83(b) or 83(i) filling with my Amazon RSU, how does my spouses 83(b) or 83(i) filling work into our financial/retirement plan?
  • How do my Amazon investments and portfolio work with my spouses?
  • My Amazon RSUs are now worth a lot of money, what is my next step?
  • I just was recruited by amazon, I want to make sure my old 401(k) is working best for my new situation.
  • How should I think about the value of RSU grants?
  • When does my Amazon 401(k) plan vest and what does that mean for me?
  • What is my RSU vesting schedule? (Amazon RSUs do not vest at the typical 4 year 25%-25%-25%-25%. They are on a 4 year 5%-15%-40%-40%) Because of this many Amazon employees are hit with a unexpected tax consequence in the last 2 years.
  • What about future compensation? What role does equity/RSUs play?
  • When can I afford to retire according to my goals and investment objectives?
  • How do I retire early?
  • Should I participate in Amazon’s 401k retirement plan?
  • I have an old 401(k) how do I make my allocation work with my new Amazon one?
  • Am I on the right track to meet my short and long term financial goals?
  • How do I set up a ROTH IRA?
  • My spouse and I make too much to contribute to a ROTH. What should I be doing?
  • How do I maximize my outside investment accounts?
  • I don’t plan on being at Amazon for my entire career. How does this work into my Financial Plan?
  • I am max funding my 401(k), is that really what I should be doing for my situation?
  • How does much disability insurance should I have? Does Amazon cover enough?

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Frequently Asked Questions:

Amazon Levels:

Software Engineer: SDE I (L4), SDE II (L5), SDE III & Senior SDE (L6), Principal SDE (L7), Senior Principal SDE (L8), Distinguished Engineer (L10)

Software Engineering Manager: L6 SDM (Software Dev Manager), L6 SDM, Senior SDM (L7), Director (L8), VP (L10), SVP (L11)

Product Manager: Product Manager (L5), Senior Product Manager (L6), Principal Product Manager & Senior Manager PM (L7), Director (L9), VP (L10)

Product Designer: IC4 Associate Designer, IC5 Designer, IC6 Senior Designer & Design Manager, IC7 Principal Designer & Senior Design Manager, IC8 Senior Principal Designer & Design Director

1.) What Is an RSU?

A Restricted Stock Unit (RSU) is a right to receive a share of
common stock after you’ve satisfied the vesting period.
2.) Who Is Eligible to Receive RSUs?
Generally, all full-time Amazon employees in the United States are eligible to
receive RSU awards.
3.) When Are RSUs Awarded?
In general, all eligible Amazon employees receive an RSU award at the time they are
hired. Additional RSU awards, if any, are determined on an annual basis in April.
4.) What Is an Award Agreement?
The RSU Award Agreement is a legal document that describes your award’s
terms and conditions, such as the number of RSUs awarded and the vesting
requirements. When it’s time to review and accept your agreement, it will be
posted to your online RSU account and you will receive a notification email
from Amazon’s stock plan administrator Morgan Stanley.
5.) How Many RSUs Will I Receive?
RSU awards are based upon job level. For certain job levels and positions, other
factors, such as an employee’s compensation range and the results of annual
performance reviews, may also be considered.
6.) What Is a Vesting Period?
The vesting period is an amount of time you must work full-time as an Amazon
employee for your RSUs to become shares. For example, if
you were awarded 10 RSUs with a two-year vesting period on April 1, 2013,
the vesting period for those 10 RSUs would end on May 15, 2015. Generally,
to satisfy the vesting requirements, you can have no breaks in service during
the vesting period and you must be a full-time employee at the time the RSUs
vest. Information about breaks in service is located on Inside Amazon. Vesting
periods will be stated on your Amazon RSU Award Agreement. 

March 1st, 2020

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