How We Serve T-Mobile Employees

T-Mobile 401K

RSU

ESPP

Insurance

Match

Roth 401(K)

After-tax 401(K)

Mega Back Door Roth

Custom Strategies

T-Mobile 401(k) Saving plan offered through Fidelity allows you to save for your future. The T-Mobile 401(k) match is the first 3% at 100%, and the next 2% at 50%. You an contribute 75% of your regular earnings and up to 85% of your bonus earnings – up to the IRS limit each year.

The T-Mobile 401(k) plan offers a Roth 401(k) Option.

Note: T-Mobile Pre-Tax 401k vs. T-Mobile Roth 401k contributions depends on each clients/households situation based on their financial plan. The saying “you will be in a lower tax bracket when you retire” is not always true. You also do not know what the tax code/tax brackets will be in retirement. Consult an experienced CFP® Professional or Tax Professional.

The 2026 limit for everything going into your 401(k) is $72,000 ($80,000 if you are 50 or older). Example on a $250,000 base salary (not including bonuses, RSU vests, etc.): You put in $24,500 + T-Mobile adds $10,000 + after-tax contributions of $37,500 = $72,000 After-Tax money grows on a tax-deferred basis until retirement. When taking a distribution in retirement, the contributions can be withdrawn tax-free (since you already paid tax on them) and the earnings will be considered taxable and ordinary income when withdrawn. Note: The T-Mobile 401k has an amazing feature called “Mega Backdoor Roth”. This is not offered in all 401(k) plans, make sure to look at that section.

The T-Mobile 401k Mega Backdoor Roth works along with the After-tax 401(k) option. The 2026 limit for everything going into your 401(k) is $72,000 ($80,000 if you are 50 or older). Example on a $250,000 base salary (not including bonuses, RSU vests, etc.): You put in $24,500 + T-Mobile adds $10,000 + after-tax contributions of $37,500 = $72,000 However, instead of stopping there and leaving it in the after-tax it gets converted to the Roth 401k side. Meaning that your contributions AND the earnings will be withdrawn tax-free in retirement. Note: When you are in Fidelity NetBenefits for in plan conversion you need to click the button on “covert my after-tax to Roth” After-tax money can be moved into a Roth through the Mega Backdoor Roth, with no income limits. T-Mobile matches 100% of the first 3% of pay you put in and 50% of the next 2%, so you get up to 4% of your pay if you put in at least 5%. You can put in more than 5%, but the match stops there. For example, on a $250,000 base salary (not including bonuses, RSU vests, etc.), T-Mobile matches up to $10,000. If you put in $24,500 and get the full match, you can add up to $37,500 more as after-tax contributions.

Should I contribute to the T-Mobile pre-tax 401(k) vs. the T-Mobile Roth 401(k)? Should I max out my T-Mobile Mega Backdoor Roth? Should I max out my T-Mobile ESPP? These are all great questions, and the simple answer is “It depends.” Having a custom-built financial plan and investment strategy determines this. In addition, the answer can evolve over time as your household situation and goals change. In additional depending on your position you may be subject to trading windows. A 10b5-1 trading plan may be a valid option.

What This Means

Our Insights

Annual stock grants, in the form of Restricted Stock Units (RSUs), are awarded to eligible employees each year. RSUs become shares of T-Mobile stock after a waiting period known as vesting. RSUs take 2-3 years to vest based on your job, with a portion vesting each year. RSUs are awarded to you at no cost to help you share in T-Mobile’s performance.

Think of RSUs as a form of cash flow in your financial plan, goals, and investment strategy. Upon each vest you have many different options: continue to hold, diversify to other investment strategies targeting your goals, contribute to a college 529 plan, go on vacation, charity contributions, buy real estate, etc. The possibilities are endless & the right strategy varies from employee to employee. What ends up hurting people the most is not having a financial plan & investment strategy in place ahead of time. Instead letting their “Gut” or “Emotions” about the stock market & T-Mobile Stock determine their next move.
Taxes: When your T-Mobile RSUs vest, they are taxed at your income rate. However, in many cases a default sell-to-cover election means 22% of the shares are sold to cover federal taxes. This can be significantly lower than the household’s tax bracket, causing surprise tax bills. A proper financial plan & investment strategy should include the potential additional taxes owed.
The higher you are at T-Mobile the more of your total compensation is tied to RSUs. This leads to continued ongoing custom planning & investment strategies.

Learn more about RSUs

What This Means

Our Insights

T-Mobile employees can purchase T-Mobile (TMUS) stock at a 15% discount through the T-Mobile Employee Stock Purchase Plan (ESPP). Employees may contribute 1% to 15% of eligible compensation through payroll deduction. The plan uses a lookback: the 15% discount is applied to the lower of the closing price on the first or last day of each six-month purchase period.

Example: If T-Mobile stock is $140 at the start of a six-month purchase period and $150 on the purchase date, the lookback uses the lower price ($140). After the 15% discount, the purchase price is $119. Shares are purchased on the last day of the period and deposited into your Fidelity account.

Taxes: ESPPs have different tax treatments (Qualifying Disposition & Disqualifying Disposition) depending on the time held from the purchase date as well as time held since the initial offering date.
Cash flow: The number-one reason we hear for people not participating is household cash flow. In many cases, custom financial planning and asset management can build ESPP contributions into the household budget so you can participate in the discounted purchase.
Over Weight Allocation to T-Mobile Stock: Between T-Mobile RSUs & T-Mobile ESPP it is very easy for it to become an overweight in your portfolio. We work heavily with people who households that have high single-stock concentrated portfolios.

Learn more about ESPPs

Health

Life

Disability

Flexible Spending Account (FSA)

My Extras

T-Mobile employees have three different type of health plans to choose from. Health Reimbursement Account (HRA) Plan, Exclusive Provider Organization (EPO) Plan, & Health Savings Account (HAS) Plan.

Short and Long Term Disability benefits provide eligible employees with income protection in the event of a disability. You are eligible for disability coverage, at no cost to you, on the first of the month coinciding with or following 180 days of continuous active employment. Short Term Disability - After a one-week unpaid waiting period, Short Term Disability benefits starting on January 1, 2022 will move to replace 75% of your pay for weeks 2 through 26. After 26 weeks, you may be eligible for Long Term Disability (LTD) benefits, provided by T-Mobile at no cost to you. LTD covers 50% of your regular monthly rate of pay. You are eligible to purchase additional LTD coverage which can protect up to a total of 60% or 66 2/3% of your pay.

What type of T-Mobile Employees do you work with?

What does it mean to be an independent investment fiduciary?

Can you work with clients remotely?

This information is designed to be educational only, and does not constitute financial advice. Atkinson Wealth Strategies is not affiliated with T-Mobile. While Atkinson Wealth Strategies communicates with its clients regarding their T-Mobile employee benefits, and provides education on T-Mobile’s Benefits, there is no guarantee that the information provided is accurate or up-to-date. T-Mobile employees should rely on their employer for the most up-to-date information on their benefits, and for answers to any questions regarding their specific situation. There is no guarantee as to the current accuracy of, nor liability for, decisions based on such information and it should not be relied on as such.

T-Mobile RSU & ESPP Financial Planning

A clear, goals-based financial plan designed around
your equity compensation (T-Mobile RSU & T-Mobile ESPP)

Taking Your Salary and Compensation
Structure Into Consideration

We're here to help you make educated financial decisions based on your
options as a T-Mobile employee.

How We Can Help

We have the expertise to help you strategically navigate your T-Mobile equity options

T-Mobile 401(K) Options

Restricted stock units (RSU)

Employee stock purchase plan (ESPP)

Insurance

Frequently Asked
Questions

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Wealth Review

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T-Mobile RSU & ESPP Financial Planning

A clear, goals-based financial plan designed around your equity compensation (T-Mobile RSU & T-Mobile ESPP)

Taking Your Salary and Compensation Structure Into Consideration

We're here to help you make educated financial decisions based on your options as a T-Mobile employee.