Top tech companies like Meta want to make sure they’re as enticing as possible to current and potential future employees. In addition to high salaries, equity compensation like Facebook RSUs, and other employee benefits, Meta also supports its employees in saving for retirement. 

By fully leveraging your financial opportunities while working for Meta (formerly Facebook), you can build a strong foundation for your future – and hopefully, one day achieve financial freedom!

Through Meta’s robust 401k plan for its employees, Meta workers can defer part of their salary towards their retirement. Furthermore, both employee contributions and employer matches to Meta (Facebook) 401ks are fully vested immediately. 

Read on for a closer look at how you can maximize your Meta 401k.

1. Max Out Facebook’s 401k Employer Match

Back in 2022, Meta began offering an enticing employee benefit to attract and retain top talent: a 401k match of 50% of employee contributions up to the IRS limit. When trying to optimize your Facebook 401k, your top priority should be maximizing this generous match that Meta offers. It’s essentially free money toward your retirement!

The concept behind a 401k match is simple. For every dollar you contribute to your 401k, Meta will match 50% of that – in other words, 50 cents for every dollar. 

If you contribute $1,000 to your Facebook 401k over the course of the year, Meta will contribute $500 to your 401k.

For 2024, the individual contribution limit for a 401k is $23,000. If you max out this contribution, you’ll also receive an employer match of $11,500!

In most situations, this will be more money in employees' pockets. It’s important to note that high-salaried employees may actually see less contribution because of the fixed dollar limitation, rather than a percentage limitation. For example, if you receive a base salary of $300,000 the $11,500 match represents only a 3.8% match of your overall salary.

Catch-Up Contribution

The amount you’ll be able to contribute to your 401k at Meta depends on your age. Employees under 50 can add $23,000/year to this account. If you’re 50 or older, you can add a $7,500/year “catch-up contribution” to that amount, for a total of $30,500.

Unlike many other employers, Meta’s 401k match also applies to catch-up contributions. That means that most employees who max out their 401k contributions will receive $11,500 in matching funds, but employees who are at least 50 can get up to $15,250. 

In other words, maximizing 401k contributions should be an even higher priority for workers in this age group! If you’re a little short of your target age milestones, this can be an incredible advantage to get back on track.

2. Utilize the After-Tax to Roth 401k (aka Mega Back Door Roth)

The After-Tax to Roth 401k (aka “Mega Back Door Roth”) makes it possible for Meta employees to contribute above the $23,000 limit to their 401k.

As of 2024, the IRS maximum for all 401k contributions is $69,000. This includes the $23,000 employee deferral and Meta’s $11,500 employer match. 

As a result, employees can contribute an additional $34,500 to their after-tax 401k!

Note that this limit does not count catch-up contributions. Those eligible for catch-ups could contribute up to $76,500!

The Facebook 401k plan also allows participants to automatically convert their after-tax contributions to the Roth 401k. This allows all after-tax contributions to grow & be distributed tax-free - a huge benefit. It is extremely important to know that if you do not set up this auto conversion feature, all growth on after-tax contributions will be taxable as income at retirement, missing out on the tax-free benefits of the Roth 401k.

3. Choose Your Own Funds

In the process of managing your Meta 401k, you’ll have the chance to choose from an impressive selection of investment opportunities. While you’ll want to talk to a financial advisor before making major investment decisions, it’s also a good idea to understand your options.

Meta’s 401k plan is administered by Fidelity, which offers several target date funds to participating employees. You can choose the right fund for you based on your expected retirement date–the closer you are to retirement, the less aggressive your fund will become.

Fidelity also allows Meta employees to invest in many other mutual funds, including stock funds, real estate funds, and money market funds. On top of that, you’ll be able to invest in Meta stock through your 401k; however, if you already have Meta RSUs, diversifying your investments may be a better idea.

4. Review Contributions Regularly

It's important to stay updated on IRS changes to 401k contribution limits, which are often adjusted for inflation. If the IRS updates limits again in 2025, you’ll want to adjust your contribution accordingly to continue maxing out what you receive from Meta!

Typically, the IRS will announce these limits at the start of the year on January 1st. Set a reminder on your calendar or phone to check for their latest announcement, or work with a financial advisor who will keep track of these updates for you.

In a similar vein, be sure to revisit your contribution limits every time you get a raise or bonus. If you can’t afford to max your Facebook 401k contributions on your current salary, that may change with your next promotion! Raises are an ideal time to contribute more to a 401k, IRA, or high-yield savings, as you can tuck away more for the future without negatively affecting your current standard of living.

5. Get Expert Guidance

Planning for your financial future can be overwhelming – especially when you’d rather spend your time advancing your career or spending time with family and hobbies.

Your Facebook 401k is just the beginning when it comes to your financial future. After maxing out your 401k and Roth IRA, where else should you invest your excess funds? As a high-income earner, do you have a strategy to minimize your tax liability?

These are the questions that can quickly transform a simple savings plan into a complex portfolio with many moving parts. The best path forward to make the most of your benefits and compensation package may not be straightforward.

While working with a reliable financial advisor is a great way to take advantage of all Meta has to offer, it’s important that you trust them to help you make the best decisions to reach your goals. 

Want to own a boat? Retire early? Travel? Consilio Wealth Advisors is here to make it easy. We focus on financial planning services specifically for people in the tech industry and work with you to map out a fully customized financial roadmap in terms you can understand.

For next-level tips and strategies to extract every dollar you deserve from your compensation, explore our free resource library for Meta employees!

Disclosures: 

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

Consilio Wealth Advisors, LLC is not affiliated with Meta (Facebook), and this article is not intended to represent any sponsorship or solicitation. Consilio Wealth Advisors often meet with Meta clients, and maintain an understanding of Meta compensation and benefits. 

Consilio Wealth Advisors, LLC (“CWA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where CWA and its representatives are properly licensed or exempt from licensure.