New video 2024 Amazon 401(k) • 2024 AMAZON 401(k) & M...
In 2023, you can contribute up to $66,000 if you’re under 50 and $73,500 if you’re 50 or older to your Amazon 401(k). You can fully leverage these limits by taking advantage of the Mega Backdoor Roth - a powerful provision within your Amazon 401(k).
The Mega Backdoor Roth allows you to contribute after-tax dollars and convert those dollars to Roth. You can maximize your retirement savings and take advantage of the tax benefits associated with a Roth.
Your regular 401(k) contribution limit also increased in 2023. If you’re under 50 you can contribute up to $22,500 and if you’re 50 or older you can contribute up to $30,000.
Amazon will also match up to 2% of your base salary, which means that if you're making $325,000 and you put $22,500 into your 401(k), Amazon will contribute an extra $6,500 as a match. That's free money from Amazon!
00:00 Introduction
00:53 2023 Amazon 401(k) Contribution Limits
01:06 Amazon employer match
01:24 Amazon Mega Backdoor Roth example
02:53 Benefits of a Roth
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Using the Mega Backdoor Roth feature, Amazon employees can contribute up to the federal limit. Here’s an example of how an employee, under 50 years old, earning a base salary of $325,000 can save thousands to a Roth:
• 401(k) contribution $22,500 (pre-tax or Roth)
• Earn Amazon match: $6,500
• After-tax contribution converted to Roth: $37,000
Your after-tax contribution, along with your 401(k) contribution and employer match = $66,000.
The Mega Backdoor Roth is a way for high-income earners to utilize the benefits of a Roth. Within a Roth your money grows tax-free. These dollars and the growth are tax-free when accessed in retirement (59.5+ years old). Having additional money in a Roth account enables you to manage your retirement distributions and taxable income. This gives you more control over future taxable income and which tax bracket you will be in.
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Website: avieradvisors.com/
We focus on providing comprehensive financial planning and investment advisory strategies for tech professionals and their families.
Third Party: Avier Wealth Advisors is not affiliated with Amazon. There is no guarantee that the information we have provided is accurate. Amazon employees are encouraged to contact their employer should they have any questions regarding their employee benefits.
Taxes: Avier Wealth Advisors does not prepare taxes. The tax ideas presented are meant to demonstrate general concepts rather than precise calculations. We consult with your tax professional for exact calculations.
11 июл 2024
