Hey microsoft folks, I’m expecting an offer to come in very soon (potentially). And the recruiter said there might be some relo bonus (potentially some signing bonus as well). My previous company wouldn’t allow after tax 401k option, so I’m going to try to use Microsoft’s for the remainder of the year But how long does that take to get setup? I know it might take a paycheck or two. Is there a quicker way to get that all set up? I don’t want to miss putting in my signing bonus/relocation bonus into the 401k Is it possible to put the signing bonus and relocation bonus into 401k ? Or is it impossible because the fidelity account takes too long? TC$250 #401k #ira #personalfinance #investments
Yeah, typically signing bonus and relocation are paid out as a different income category than normal salary, so it won’t get paid into things like 401(k) or stock purchase plan. However, you’re wise to get your 401(k) set up quickly. If you enroll as soon as you can, you should see the contributions begin in your first or second paycheck. I enrolled my first week at Apple and I think my second paycheck started paying into the 401k. I moved to Apple in July, and in the first half of the year I had finished my 401k contributions ($19,500) but I am still doing after tax contributions and immediately converting them to Roth. Even though your relo and signing bonus won’t go in, you could still set your after tax contribution to be the max percentage (I think for me it’s 10 or 15%) to try to take full advantage of the after tax contribution for the rest of the year. And you can also contribute to the normal 401k (up to 19,500) if you haven’t finished that yet. Good luck!
Wait seriously?! Fuck! The whole point was to max out 2020’s contributions. But without relo, then I won’t be able to. Of course for 2021 yeah sure, but that’s way too late for 2020 then
You can check, maybe someone from Microsoft can weigh in, maybe relo gets paid out like a normal pay, but I don’t think signing bonus would.
The account is fully set up a few weeks AFTER your first paychecks. No possibility of front load. I tried.
Gah. Dang it. Thanks 🙏
Sign up bonus came out of my 2nd paycheck and the account was not set up yet (no data yet propagated to fidelity). I did have multiple fidelity accounts already so it wasn't even that the issue. Just incompressible time to wait..
I think you can contribute up to 65% of your income to 401k. Put max income in to get the free matching money and live off of your savings until next year. I am adding 24% of my paycheck into 401k to make up payments and reach $19500 in 401k.
Can confirm this
Shoot. This is so troll. Had I known, I would have interviewed a lot earlier!!! (I already maxed out my pretax). Thanks so much for the info
The signing bonus and relocation doesn’t go into 401k. I tried when I joined 6 months ago
Why not? If it’s part of your salary shouldn’t it go in?