Your Amazon Benefits & Career: Financial Planning for Employees and Executives

Do you work at Amazon? Get the resources you need and expert insights from financial professionals who specialize in helping Amazon employees make the most of their compensation package and benefits.

Whether you’re a new Amazon employee or you’ve moved up the ranks into a management or executive leadership role over a multi-year career, it’s important to make smart money moves with your income and employee benefits. For example:

✅ Do you know the right moves to make to get the greatest value from the Amazon benefits available to you?

✅If you’re thinking about leaving Amazon for another job or planning to retire from the company in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?

Get the Most Value from Your Amazon Benefits and Compensation Package

Throughout the year, Amazon provides its employees and executives with updates about their benefits ranging from health insurance and health savings plans to retirement plans like a 401(k), deferred compensation plans, and stock options. While the company offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with Amazon who specialize in helping Amazon employees make the most of their income and benefits.

Whether you work in the Amazon headquarters in Seattle, Washington, another office location around the country, or remotely from home, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.

For example, sensitive topics like discussing the steps you should take before quitting your job at Amazon to work elsewhere, protecting yourself in advance of a corporate layoff, or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.

💡 In the Q&A below, you’ll gain insights from financial advisors who work with Amazon employees to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.

🙋‍♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.

💸 Smart Money Insights for Amazon Employees & Executives

This page is organized into sections to help you quickly find the information you need and get answers to your questions:

1. Q&A: Financial Planning Tips for Amazon Employees & Executives
2. Get Answers to Your Questions About Your Amazon Benefits and Career
3. Quick Facts & Resources for Amazon Employees
4. Browse Related Articles

Q&A: Financial Planning Tips for Amazon Employees & Executives

Get to Know:
↗️ Angel Escobedo (Austin, Texas)
↗️ Jonathan Owens (Spokane, Washington
↗️ Zack Gutches (Aurora, Colorado)

Answers to Amazon Employee Questions with Angel Escobedo, CFP®

Angel Escobedo is a financial advisor based in Austin, Texas, who specializes in offering financial planning services to Amazon employees. Angel helps his clients get the most value from their Amazon benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Amazon employees save for their retirement, how do you help them make the most of their employee benefits?

Angel: Amazon offers a wide range of benefits, most of which its employees are either unaware of or do not use to their full benefit. For example, did you know you can get an estate plan done free of charge? This might be one of many benefits you might be looking to discuss with a professional before you take advantage of it.

Q: Is there a particular benefit available to Amazon employees you feel isn’t as well utilized or understood by employees as it should be?

Angel: The one that comes to mind right away is 401k matching contributions. To maximize the full match Amazon provides, they need to contribute 4% of their compensation. Amazon will match 2% of that 4% contribution. Some employees will reduce their contribution from 4% to 2%, thinking they will still receive the same amount from Amazon. Unfortunately, in the scenario that the employee only contributes 2%, Amazon will, in turn, only match 1% of that contribution—bringing down the total contribution from 6% between both parties down to 3%, cutting their benefit in half.

The second thing is life insurance, specifically personal personal policies purchased by employees in the open market instead of using their benefits. If you’re going to buy life insurance, you should compare the cost of the policy against the same level of coverage that can be purchased as part of your benefits package. You can purchase supplemental life insurance through Amazon with a maximum of 2.2 million. Most of the time, when people shop for life insurance, they do so because they have just started a family. If that’s the case, the employee can change their benefits outside of open enrollment. This is also the case if the employee just got married.

Q: Beyond Amazon employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?

Angel: Amazon attracts top talent via RSUs, which come with unintended tax consequences. Preparing for large distributions with a good tax strategy is crucial to making the most of your RSUs. Amazon also provides generous paid family leave. After one full year of employment, Amazon offers up to 20 weeks of fully paid leave for birthing parents, including four weeks before the baby is born.

One thing that I don’t find valuable but get questions about all the time is the Direct Stock Purchase Plan Amazon provides its employees. Amazon provides a stock purchase plan; however, employees do not get a discount when buying shares like in a traditional ESPP. There have been hints that this might change, but as of now, there is no added benefit in signing up for the direct stock purchase plan over simply buying shares at your discretion.

Q: For Amazon employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Angel: When selecting a new employer, compare your total compensation package, not just your new income. If there are any RSU vesting around the corner, it might be worth waiting until they’re vested to leave. Roll over your Amazon 401k to your new employer’s retirement-sponsored plan or your personal IRA.

Q: For Amazon employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Angel: One crucial consideration for retiring Amazon employees is their willingness to dedicate themselves to financial planning, tax strategies, and investment management to secure a successful retirement. Most professionals can provide value in giving your time back, but the best will also find areas where you can optimize your plan.

Get to Know Angel Escobedo, Financial Advisor for Amazon Employees:

View Angel’s profile page on Wealthtender or visit his website to learn more.

Answers to Amazon Employee Questions with Jonathan Owens, CFP®, CEPA®, AIF®, AEP®

Jonathan Owens is a financial advisor based in Spokane, Washington, who specializes in offering financial planning services to Amazon employees. Jonathan helps his clients get the most value from their Amazon benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Amazon employees save for their retirement, how do you help them make the most of their employee benefits?

Jonathan: I help Amazon employees maximize their benefits by providing personalized guidance on various aspects. It’s important that they optimize retirement plans like 401(k)s, managing stock options and RSUs, and making the most of health savings accounts (HSAs). We can ensure they have appropriate life and disability coverage, encourage utilization of employee assistance programs (EAPs), and support education and training through tuition reimbursement. Additionally, I can help them with tax planning and financial planning to achieve goals such as home buying, saving for college, or early retirement.

Q: When you first speak with an Amazon employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Jonathan: Can you describe your current role and tenure at Amazon? What does your compensation package include (salary, bonuses, stock options, RSUs)? Are you aware of the tax implications of your benefits and compensation, and do you have a strategy for managing them? What are your short-term and long-term financial goals?

Q: Is there a particular benefit available to Amazon employees you feel isn’t as well utilized or understood by employees as it should be?

Jonathan: I find that HSAs are the least utilized benefit. These accounts have a triple tax benefit and can be used like an IRA after age 65 or tax-free for Long-Term Care expenses. WA Cares only covers Washington residents up to $35,000, so this can be a very attractive way to fund potential care.

Q: Beyond Amazon employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients (e.g., stock, education savings, health savings)?

Jonathan: RSUs are a fantastic benefit that can help you pay off your home early, fund your children’s college, and more. Creating a tax plan and budget is imperative to ensure these dollars go the farthest.

Q: For Amazon employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Jonathan: Make sure you reflect on why you’re leaving the company so you don’t repeat it with your next employer.

Q: For Amazon employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Jonathan: As you approach retirement, you’ll want to make sure you de-risk your investments. If most of your nest egg is tied up in Amazon stock, you may be subject to a wild market rollercoaster. Make sure you diversify your stock exposure as well as add bonds and/or cash to your retirement income strategy.

Q: For Amazon employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Jonathan: If you’ve been doing this yourself all this time and your spouse is not on board, you may be leaving them with a mess. It’s important that they are brought up to speed or to hire a professional that they like and trust that could step in should you prematurely pass away or become incapacitated.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are Amazon employees and how do you help them overcome these obstacles?

Jonathan: Transitioning from the accumulation phase to the retirement phase. What worked while building wealth does always work while living off of it.

Q: What questions do you recommend Amazon employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Jonathan: Are you a fiduciary? How much time do you have left in your career? What’s your succession plan?

Q: Is there anything that comes up frequently in your initial meeting with Amazon employees that surprises you?

Jonathan: How many people that don’t utilize the HSA.

Q: For highly compensated Amazon employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Jonathan: Tax planning with their RSU’s.

Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Amazon when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Jonathan: I find that those with more in RSUs than their 401k don’t realize how they’re over-exposed to concentration risk. Having most of your eggs in one basket can expose you to significant short-term risk. As you may recall, Amazon stock fell almost 50% in 2022. Diversification is important, especially as you approach retirement age

Get to Know Jonathan Owens, Financial Advisor for Amazon Employees:

View Jonathan’s profile page on Wealthtender or visit his website to learn more.

Answers to Employee Questions with Zack Gutches, CFP®, CPA

Zack Gutches is a financial advisor based in Aurora, Colorado who specializes in offering financial planning services to Amazon employees. Zack helps his clients get the most value from their Amazon benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Amazon employees save for their retirement, how do you help them make the most of their employee benefits?

Zack: While Amazon has amazing benefits, they are often looked at in a vacuum. The real art and skill is being able to analyze and coordinate them with every other piece of your financial puzzle to create a cohesive financial plan that is working for you and you’re maximizing the resources available to you in alignment with your specific values and goals.

Q: When you first speak with an Amazon employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Zack: What level are you and what is your tenure? How have you handled your RSU’s in the past? Do you have a concentrated position in vested Amazon stock? Tell me more about your tax-accumulation strategy you’ve employed to-date.

Q: Is there a particular benefit available to Amazon employees you feel isn’t as well utilized or understood by employees as it should be?

Zack: For sure the After-tax 401k with the In-Plan Roth Conversion. Amazon was a bit late on the scene to begin offering it to its employees, and I see low adoption with it even for employees that would make excellent candidates to harness its amazing tax powers. While the exact amount each employee can put in to the After tax 401k depends on their specific salary, missing out on ~$40,000 per year of additional Roth (tax-free) dollars really adds up.

Q: Beyond Amazon employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients (e.g., stock, education savings, health savings)?

Zack: The Health Savings Account (“HSA”) is a big one. HSA’s are the most tax-advantaged accounts in existence. They can be either a triple OR quadruple tax-benefit account depending on income, Amazon puts a match into the HSA, they don’t have income limitations like Roth IRA’s do, they can turn into traditional IRA’s after age 65, be used to pay for Medicare or Long-Term Care expenses in retirement, or they can be used to pay the non-subsidized COBRA health insurance premiums if you happen to get laid off but still want to keep the Amazon health insurance coverage while you find a new job.

Q: For Amazon employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Zack: Amazon provides life insurance at 2x your annual salary. This life insurance coverage tends to not be portable, meaning it doesn’t come with you when you leave, exposing you to a potential gap in coverage until you either get enrolled at your next company, or explore an outside, portable life insurance policy. If you hold Amazon stock at a gain in your 401k, I also educate on how rolling that 401k elsewhere may sacrifice the ability to do a Net Unrealized Appreciation (“NUA”) transaction down the road.

Q: For Amazon employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Zack: Retirement is a huge change. You can read about it all you want, but it’s one of those things you have to experience firsthand to truly grasp how big of a change it is (a lot like becoming a Parent). I have my clients directly deposit their wages into their Investment Portfolio, then automate transfers to their Checking account so they get used to living ‘from their portfolio’ years before retirement happens. Your asset allocation MAY also need to change too since risk is a function of time horizon, and Sequence of Return Risk comes into play within retirement.

Q: For Amazon employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Zack: A question I frequently ask prospective clients is how good of friends they are with TED. Time, Expertise, and Desire. If you are lacking 2 or more of the 3, it may make sense to seriously explore a partnership with a qualified Certified Financial Planner, and one who will fill in the specific gap(s) of any of the 3 criteria you lack.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are Amazon employees and how do you help them overcome these obstacles?

Zack: The under withholding on RSU’s and being surprised what you owe at tax time. RSU’s are legally required to be withheld at 22% for Federal income taxes, which is often below the marginal tax rate of highly compensated Amazon employees and executives. As a CPA, I not only file my client’s tax return for them, but I also run an annual tax projection to prepare the portfolio’s cash flow and allocation for any tax liabilities, avoid surprises (and hefty underpayment penalties), plus develop proactive tax strategy before the year is over and it’s too late.

Q: What questions do you recommend Amazon employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Zack: Are you a CERTIFIED FINANCIAL PLANNER TM professional? Do you have the ability to receive compensation from any sources other than the direct fees I would pay you as a client? Are you a fiduciary at all times? If so, will you put it in writing? What’s your experience with navigating RSU’s, concentrated stock positions, and tech professionals? And most importantly, what are your primary values, and why do you do what you do for a vocation?

Q: Is there anything that comes up frequently in your initial meeting with Amazon employees that surprises you?

Zack: That RSU’s have to be withheld at 22% (because they are deemed Supplemental Wages), and there is often confusion around the True-Up match feature on the 401k for those that like to put in more than 4% of their compensation to the 401k.

Q: For highly compensated Amazon employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Zack: Concentration risk. Not only at the asset-level (for those who hold their Amazon RSU’s after vest), but also at the income-level (especially for those who have a large percentage of their compensation via RSU’s relative to their salary).

Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Amazon when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Zack: Amazon has great corporate partnerships with benefits that are often overlooked. 1 example is a client had most of their investible portfolio in Amazon (all with huge unrealized capital gains embedded), and the bank Amazon partners with not only provides favorable interest rates, but they allow you to pledge your Amazon shares towards a portion of the down payment on the mortgage to avoid selling Amazon shares and unnecessarily having to pay 30.8% taxes (in this client’s instance) on the gains when this client already had adequate cash-flow to service the mortgage payment!

Get to Know Zack Gutches, Financial Advisor for Amazon Employees:

View Zack’s profile page on Wealthtender or visit his website to learn more.

🙋‍♀️ Have Questions About Your Amazon Benefits or Career?

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