Microsoft 401 k

Small Cap - Growth 30 0. Mid Cap - Value 11 0. Large Cap - Value 23 0. Small Cap - Value 37 0. Following Plans Following a plan allows you to: Access the plan directly from your profile page Receive e-mail alerts when the plan is rebalanced, or changed Make modifications and contribute to the plan information.

Get free, ongoing, allocation recommendations and funds ratings for you plan! For a better control of your retirement savings, and growing your money faster. Send me updates Share this plan. The table shows all the available investment options in the plan. The Mega Backdoor Roth allows you to save even more for your retirement and reduce some of your future tax liabilities. For a more in-depth look at this powerful option, see our article on the Microsoft Mega Backdoor Roth Conversion.

Focused on your needs, we provide comprehensive financial planning and investment advisory strategies for individuals and families. Avier Wealth Advisors is not affiliated with Microsoft. While Avier communicates with its clients regarding their Microsoft employee benefits, and educates itself on the Microsoft Benefits, there is no guarantee that the information we have provided is accurate. Microsoft employees are encouraged to contact their employer should they have any questions regarding their specific employee benefits.

Thankfully, the IRS recently released guidance on this issue. And it keeps getting better. The earnings on after-tax contributions would be subject to ordinary income taxes once distributed in retirement in a normal situation. However, Microsoft automatically converts those after-tax contributions to the Roth bucket of your k. This allows the earnings to grow tax-free. Doing this consistently over the course of a decade or longer could yield a massive tax-free nest egg in retirement.

In Microsoft k , there are over 25 investment options. Brokerage links, bond funds, equity funds, target-date funds, annuities, and more. There is no one size fits all approach. I love financial planning because there is no single right answer; there are multiple strategies to get from point a to point b. However, what we do have are the best practices and proven strategies using financial science. Know your time horizon. When deciding what investments to utilize, your first step is to understand your time horizon.

Your time horizon should dictate the aggressiveness of your portfolio. A more aggressive portfolio means a larger percentage is allocated towards equities while a conservative portfolio holds more fixed-income investments.

With a time horizon of many decades, your allocation can be more aggressive. Pay attention to company-specific risk. Companies such as Microsoft provide many of your benefits in the form of shares.