How We Serve Google Employees

Google 401K

Google Restricted Stock Units/ RSU (GSUs)

Insurance

Match

Roth 401(K)

After-tax 401(K)

Mega Back Door Roth

Custom Strategies

Google will match 100% up to $3,000 or 50% of every dollar you contribute up to the IRS deferral maximum. For 2023, that means you can contribute $22,500. If you are 50 or over, you are eligible for an additional “catch-up” contribution of $7,500 and unlike many employers, Google matches the “catch-up” contributions. Your personal and matching contributions are considered fully vested on day one.

Google’s 401k has a Roth 401k option. You can contribute the same $22,500 for 2023, but you do not get a tax reduction in your current year. Instead, the Roth 401k allows those earnings to grow tax deferred and offer tax-free withdrawals, when planned correctly, in retirement.

Note: Contributing to Google’s pre-tax 401k vs. Google’s Roth 401k depends on your unique situation. 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 and tax brackets will be when you retire.

The limit for total 401(k) contributions in 2023 is $66,000 (not including “catch-up”). This means you can contribute an additional $32,250 into the Google 401k Plan via after-tax contributions

Example: Personal 401k contributions of $22,500 (not including “catch-up”) + Google match of $11,250 (50% of $22,500) + After-tax contributions $32,250 = $66,000

After-tax money grows on a tax-deferred basis until retirement. When taking a distribution in retirement, the contributions can be withdrawn tax-free but the earnings are considered taxable ordinary income when withdrawn.

Note: The Google 401k has an amazing feature called “Mega Backdoor Roth” which is not offered in all 401k plans. Refer to the next option for details.

Google’s 401k Mega Backdoor Roth works with the after-tax 401k option. The limit for total 401k contributions in 2023 is $66,000 (not including “catch-up”). This means you can contribute an additional $32,250 into Google’s 401k Plan via after-tax contributions and unlike the Roth 401k, this option does not have income limits.

Example: Personal 401k contributions $22,500 (not including “catch-up”) + Google 401k match of $11,250 (50% of $22,500) + after-tax contributions $32,250 = $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.

Should you contribute to the pre-tax 401k vs. the Roth 401k? Should I max out my Google Mega Backdoor Roth? How do my Google GSUs fit into this? These are all great questions, and the simple answer is “It Depends”. In addition, the answer can change over time as your household situation and goals change.

Note: Depending on your position you may be subject to trading windows, making a.10b5-1 trading plan a valid option.

What This Means

Our Insights

There are two Google RSU Awards you will receive as a Google employee.

Restricted stock units (RSU) at Google are also called GSUs
On-hire Stock Awards: This will be part of your hiring package at Google. Google’s vesting schedule is unique in that they are front-loaded, meaning higher vesting percentages earlier.
- Year One: 33%
- Year Two: 33%
- Year Three: 22%
- Year Four: 12%
Refresher Awards: These are the Google stock awards you received starting after year one as it refreshes while still working at the company.

Brief Description of your approach:

Think of Google RSUs as a form of cash flow in your financial plan, goals, and investment strategy. Upon each vesting, you have many different options: continue to hold, diversify to other investments, contribute to a college 529 plan, go on vacation, make charitable contributions, buy real estate, etc. The possibilities are endless and the right strategy varies based on your unique situation. What ends up hurting people the most is not having a financial plan and investment strategy in place ahead of time, which leads to inconsistent and emotional decision-making.
Taxes: When your Google RSUs vest they are taxed at your income rate. However, in many cases, by default, sell-to-cover elections mean 22% will be sold to cover federal taxes. This can be significantly lower than your tax bracket, causing surprise tax bills.
The higher up you are at Meta, the more of your total compensation is tied to RSUs, requiring custom planning and investment strategies

Learn more about RSUs

Health

Life

Disability

Flexible Spending Account (FSA)

Perks

Google employees are offered two main types of plans: traditional style health plan and health savings account (HSA) if enrolled in a high-deductible health plan (HDHP). The HSA is a triple tax-advantaged account and offers pre-tax contributions, tax-deferred growth, and tax-free withdrawals as long as they are used for qualified medical purchases. The 2023 limit is $3,850 for individuals and $7,750 for families. Google will contribute $1000 per year for individuals and $2,000 per year for families

What type of Google 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 Google. While Atkinson Wealth Strategies communicates with its clients regarding their Google employee benefits, and provides education on Google’s Benefits, there is no guarantee that the information provided is accurate or up-to-date. Google 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.