Amazon 401k Plan, Match Guide & Rollover Options

Article Summary: Everyone knows who Amazon is and what they do. If you’re reading this now, chances are you’re looking for information on Amazon’s 401k plan or perhaps you’re an employee looking to move your 401k today. Either way, I’ve got you covered! In this article, you’ll learn all about’s 401k match plan, how they compare against others, other benefits to consider that are provided by Amazon, and lastly, how to move your 401k account to an IRA if you’re looking for alternative options. 401k Plans

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Everything You Must Know About The Amazon Retirement Plan

As a software engineer, receiving an offer in the six-figure range from a reputable company like Amazon can be a significant milestone in your career. While the base salary may be the primary focus, it is crucial to gain a comprehensive understanding of the full range of benefits and compensation packages offered to fully leverage your compensation opportunities.

It is vital that you examine all aspects of the offer, including the 401k matching program, sign-on bonuses, and relocation allowances. By taking the time to understand these benefits in-depth, you can maximize your compensation and negotiate better deals.

This informative article will provide you with all the necessary information you need to know about Amazon’s 401k contributions and matching program, among other important considerations to keep in mind.

Investing in a fund that integrates human expertise may prove to be a lucrative decision, especially if it results in index funds outperforming the market. The Amazon stock fund presents a unique opportunity to acquire, trade, and receive matching contributions for Amazon shares within your 401(k) portfolio.

Tip – Benefits Vary By State

The availability of the Amazon 401(k) program is contingent upon geographic location and varies by state.

Not all employees have access to this program, as certain states such as Connecticut, Illinois, Michigan, Indiana, Maryland, North Carolina, Pennsylvania, Utah, and Wisconsin have alternate benefit options in place for their Amazon employees.

Why is this important? Well, because it could impact you and your future retirement savings. So please be sure to take location into consideration.

What Is The Amazon 401k Match?

A pre-tax retirement savings account, known as a 401(k) plan, is typically offered by employers to their employees in the United States. This investment tool was established through the Revenue Act and has been structured according to tax laws. Companies may have varying policies regarding accessing funds, the timing of availability, and employer contributions toward individual employee plans.

In essence, the employer will match the employee’s savings contributions to a particular percentage, however, the employee has the option to contribute as they desire.

Typically, investors choose actively managed funds and target-date funds which make retirement savings a breeze. 401(k) funds have a unique feature in which they are exempted from conventional income taxes, with tax-free growth allowing them to grow exponentially. Another advantage of a 401(k) plan is that it provides a secure method to set aside retirement savings, preventing premature expenditure.

401k Contributions and Company Match

Beginning in January 2020, Amazon instituted a program that allows Amazon employees to partake in the Amazon Mega Backdoor Roth Conversion, which involves contributing after-tax funds to the company’s 401k plan.

This new initiative presents an opportunity for Amazon personnel to take advantage of potential benefits. As an Amazon employee, it is important to understand the implications of this program and how it can positively impact your personal financial plan and future.

How Much Does Amazon Match Employees’ 401k Contributions?

Amazon offers a comprehensive 401k contribution retirement plan with generous benefits for employees under the age of 50. You may contribute $19,500 per year, which is an exceptional opportunity to grow your savings.

In addition, Amazon matches 50% of your first 4% contribution, translating to a 2% contribution to your plan based on your base salary. To illustrate, consider an employee with a base salary of $160,000 per year.

By contributing the maximum amount of $19,500 to their 401k, Amazon will contribute an additional $3,200 as a match, which equates to 2% of their annual base salary amount. This valuable benefit offers an exceptional opportunity to grow your retirement savings, while also securing your financial future.

Amazon’s 401k Contributions Vs. Other Companies

Among the leading companies in the technology industry, such as Amazon, Facebook, Microsoft, and Google, it is common practice to match a portion of employee contributions to their 401k plan. However, the maximum contribution offered by Amazon is limited to 4% of eligible pay, which is lower compared to the 7% and 6% offered by Facebook and Microsoft, respectively.

Moreover, Facebook and Microsoft provide immediate vesting for their 401k plans, while Amazon requires a minimum of three years of service before the employee can receive their match. The match catch-up contributions are not matched. Although Amazon may offer company stocks as a payout, employees have the freedom to reallocate their funds as per their personal financial objectives.

It is our professional recommendation to thoroughly consider maximizing your 401(k) contributions up to the annual limit established by the Internal Revenue Service. However, in the event that this is not feasible, it is important to note that a contribution of at least 4% of taxable income will enable you to obtain the free money offered by Amazon.

Other Benefits To Consider

When deliberating a job offer, it is vital to take into account the multitude of benefits on offer, as they can considerably affect your financial standing in the long run.

It’s essential to consider a range of factors and weigh them against those of rival companies to arrive at an informed decision. Among the benefits worth considering are those that Amazon has to offer.

Base Pay

When evaluating Amazon’s compensation packages, it becomes apparent that the base pay may not be the most lucrative in comparison to other notable tech companies.

For instance, a software engineer role at Amazon yields a base pay of $162K annually, whereas tech giants Google and Facebook offer slightly more for the same position.

Sign Up Bonus

Amazon provides a significant sign-on incentive that may account for as much as 35% of your aggregate remuneration, disbursed within the first two years of service.

Daily Life Expense

The expenses associated with daily life, known as the cost of living, are comparably much lower cost, for employees of Amazon and Microsoft residing in Seattle as compared to those of Silicon Valley, home to industry giants Facebook and Google.

Relocation Packages

Amazon extends its assistance to employees who are considering relocation. The company’s relocation packages are regarded as highly advantageous, as they provide a choice between a lump-sum payment of approximately $10,000 that can be allotted towards moving expenses or a relocation.

The relocation package encompasses housing and moving services. This provision is a testament to Amazon’s commitment to ensuring a smooth and seamless transition for its valued workforce.

Restricted Stock Units or RSUs

Amazon’s compensation package includes Restricted Stock Units (RSUs) that are disbursed over a four-year period, with a gradually increasing vesting percentage that initiates at 10% within the initial two calendar years thereafter. The company’s benefits package offers a distinct advantage through its exceptional stock performance that exceeds industry standards.

Other Considerations

Amazon has been able to build a remarkable standing within the industry as a result of its unwavering commitment to delivering exceptional business services. This is evidenced by the fact that 74% of its present workforce have indicated that they are willing to recommend work opportunities to their acquaintances.

However, it’s worth noting that the organization falls short in comparison to other tech powerhouses when it comes to some benefits, such as student loan repayment assistance, family planning benefits, educational grants, and a range of other offerings.


Despite these perks, Amazon lacks some of the benefits provided by the other tech giants and giant companies, such as student loan payment matches, educational grants, family planning benefits, and more

Moving To A Gold IRA Account

A lot of employees are choosing to move the funds in their 401k account into a gold ira account. It’s something that they choose to do in order to hedge against the current market. Hundreds of people make the move daily, so it’s not an uncommon thing.

However, it’s very important that you transfer to gold using the right investment firm. The most reputable IRA firms out there that are handling precious metal IRAs are Goldco, LLC and Red Rock Secured, LLC.


It’s imperative to factor in Amazon’s employer match, 401k match, and supplementary corporate perks whilst seeking employment with the esteemed organization. Even the slightest disparities in remuneration can have a considerable impact on one’s financial objectives in the long term.


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