3
Optimize Your Apple Compensation Package | 10 Benefits to Take Advantage Of
401(k) Plan & Employer Match
There are two available 401(k) account options to choose from with Apple’s retirement planning program: traditional and Roth 401(k)s. Traditional 401(k) accounts are funded with pre-tax dollars, but you will pay income tax on the distributions in retirement. On the other hand, Roth 401(k) accounts are funded with after-tax dollars, and you can withdraw money from the account tax-free in retirement. In 2024, employees can contribute up to $23,000 pre-tax dollars per tax year towards a 401(k). If you are age 50 or older, you can contribute an additional $7,500 into your 401(k) and an additional $1,000 into your IRA. Apple will match 100% of the employee’s contributions, up to 6% of the employee’s base salary.
03
04
05
Health Savings Account (HSA)
Employees can also contribute pre-tax dollars into a Health Savings Account. In addition to employee contributions, Apple will also contribute $750 per year to an employee’s HSA account. Similar to a 401(k), you can invest these funds to potentially grow its value over time. However, the money within an HSA can be used only for eligible health-related expenses and procedures. HSA accounts do not expire and can be saved for later use, even if you are no longer an employee of Apple.
Mega Backdoor Roth
The Mega Backdoor Roth contribution is a powerful, but rarely utilized benefit that is only available as part of your employer 401(k) – lucky for you, Apple is an employer that offers it. It allows employees to first make very large post-tax contributions into their retirement plan and then convert these after-tax contributions to a Roth account.
Roth accounts are often viewed as the Rolls-Royce of retirement accounts because they provide not only tax-free accumulation and compounding over time but are also tax-free upon withdrawal in retirement." Read the benefits.
Gerry O'Connell, EA
Tax Planning & Partner
Find out how to maximize both your tax-deductible contributions and your tax-free Roth account using your Apple 401(k) plan. Learn how to fund your retirement accounts by up to $76,500 per year, every year that you're employed.
To learn more about the Mega Backdoor Roth strategy, download and view our white paper.
Note that the exact features for these plans can be very company-specific – because every plan will have different rules, the plan documents must be thoroughly reviewed in order to maximize the Mega Backdoor Roth benefits.