How We Serve
T-Mobile Employees
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.
As a T-Mobile Employee you are offered some of the best all-around benefits in the industry. However, this leaves you with a lot of options, what is right for one individual may not be the right for the next based on their goals, family, and life stage. You deserve to work with an experienced CFP® Professional.
How We Can Help
We have the expertise to help you strategically navigate your T-Mobile equity options
T-Mobile 401(K) Options
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 limit for total 401(k) contributions in 2023 is $66,000 (not including “catch-up”).
Personal 401k contributions (not including “catch-up”) + After-tax contributions = $66,00
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 When taking a distribution in retirement, the contributions can be withdrawn tax-free (since you already paid tax on them) and the earnings will be considered taxable and ordinary income when withdrawn.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 limit for total 401(k) contributions in 2023 is $66,000 (not including “catch-up”). This means you can put in an additional money into the T-Mobile 401(k) Plan via After-Tax Contributions
Personal 401k contributions (not including “catch-up”) + T-Mobile Match + After-tax contributions = $66,000.
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”
This feature allows you to get an additional $32,250 into a Roth 401k without income limits.
Should I contribute to the T-Mobile Pre-Tax 401(k) vs. the T-Mobile Roth 401K? Should I max out my T-Mobile Mega Backdoor Roth? Should I max out my Microsoft ESPP? These are all great questions, and the simple answer is “It Depends”. Having a custom-built financial plan & investment strategy determines this. In additional the answer can evolve/change with 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.
Restricted stock units (RSU)
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 are taxed at your income rate. However, in many cases by default Microsoft’s sell-to-cover elections means 22% will be sold for 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.
Employee stock purchase plan (ESPP)
T-Mobile Employees have a fantastic opportunity with the Microsoft ESPP Plan. The plan allows you to purchase Microsoft stock at a 10% discount (limited to 15% or 25k a year whichever is lower.)
Example: if T-Mobile is $300 per share on the date of purchase. Microsoft will purchase the savings you have accumulated over the previous quarter at $270 via the ESPP payroll deductions. They will immediately deposit the ESPP Shares 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 1 reason we hear for people not participating is due to household cash flow. In many cased through proper custom financial planning & asset management, this can be built in to make sure you are capitalizing on the $2,500yr benefit!
- 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.
Insurance
Frequently Asked
Questions
We work with T-Mobile Employees who are wanting a long-term relationship with custom financial/retirement planning & custom asset management with at least $500k of investible assets. Because of the level of holistic custom strategies and goals, we do not accept one-off transactional clients. We work with clients long-term.
We are not tied to any firm’s proprietary investment products and engage in no investment banking activities, which means our research and market insights are independent and we are free to recommend any investments that will help you pursue your financial goals.
Yes, we work with clients across the country and have many clients who have never set foot in our office. We implement robust technology for a seamless virtual client experience.
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.
Schedule Your Complimentary
Wealth Review
Collaborate with us to review your options and establish a
wealth management plan that aligns with your goals and
objectives.
Are you a T-mobile employee with over $500k of
investible who is looking for custom financial planning & asset management.
Let’s set up a time to talk to see if we are a good fit.
Speak With Our Team
