How We Serve Meta Employees
A clear, goals-based financial plan designed
around your equity compensation (META RSU)
Taking your salary and compensation structure into consideration
We're here to help you make educated financial decisions based on your
options as a Meta employee.
As a Meta employee, you have a lot of benefits and opportunities. What is right for one of your colleagues may not be right for you. Work with an experienced CFP® Professional that will help you navigate and leverage your benefits, to develop a comprehensive custom plan that prioritizes your goals, objectives, and life stage.
How we can help
We have the experience to help you strategically navigate your Meta equity options
Meta 401K Options
Meta will match 50% of every dollar you contribute, up to the IRS deferral maximum. For 2023, that means you can contribute $22,500 and get $11,250 in matching.
If you are 50 or over, you are eligible for an additional “catch-up” contribution of $7,500 and, unlike many other employers, Meta matches on “catch-up” contributions as well.
Meta’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. You still receive the same 50% Meta 401k match on your Roth 401k contributions.
Note: Contributing to Meta’s Pre-tax 401k vs. Meta’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 401k contributions in 2023 is $66,000 (not including “catch-up”). This means you can contribute an additional $32,250 to your Meta 401k via After-tax Contributions.
Example: Personal 401k contributions of $22,500 (not including “catch-up”) + Meta’s match of $11,250 (50% of $22,500) + after-tax contributions of $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 When taking a distribution in retirement, the contributions can be withdrawn tax-free, but the earnings are considered taxable ordinary income when withdrawn.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: Meta’s 401k has an amazing feature called “Mega Backdoor Roth” which is not offered in all 401k plans. Refer to the next option for details.
Meta’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 Meta’s 401k 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”) + Meta 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 you max out your Meta Mega Backdoor Roth? 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.
Restricted stock units (RSU)
There are two types of Meta RSU Awards you will receive as a Meta employee.
- On-hire Stock Awards: This will be part of your hiring package at Meta. The vesting schedule will be determined when you are hired. Typically vesting 6.25% per quarter for four years vs. many other employers that have annual vesting schedules.
- Annual Stock Refresh/ Performance Review: These are given after annual performance reviews. Meta historically has paid for employees that perform well, .with those that exceed expectations getting up to 200% of the bonus.
- Think of Meta 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 Meta 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 your position at Meta, the more of your total compensation is tied to RSUs, requiring custom planning and investment strategies.
Insurance
Meta 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 since it 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. Meta will contribute $750 per year for individuals and $1,500 for families.
Meta employees receive a number of different perks: on-campus meals, transportation, family planning, reimbursement for eligible expenses that support physical, mental, and financial well-being, family care, and much more!
Frequently Asked
Questions
We work with Meta employees with at least $500,000 in investible assets who are wanting a long-term relationship with custom financial/retirement planning and asset management. Because of the level of holistic custom strategies and goals, we do not accept one-off transactional clients.
This information is designed to be educational only, and does not constitute financial advice. Atkinson Wealth Strategies is not affiliated with Meta. While Atkinson Wealth Strategies communicates with its clients regarding their Meta employee benefits, and provides education on Meta’s Benefits, there is no guarantee that the information provided is accurate or up-to-date. Meta 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 Meta employee with over $500,000
in investible assets looking for custom financial planning and asset management?
Let’s schedule a time to talk to see if we are a good fit.
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