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How Do Restricted Stock Units (RSUs) work at Meta?

An equity grant of Restricted Stock Units (RSUs) is the primary way that Meta employees receive Meta stock. One unit of Restricted Stock conveys your right to receive one common share of Meta stock at a specific time in the future according to a designated “vesting” schedule.   

Once your shares vest, you own the shares outright just like anyone else that owns Meta Stock. There is a possibility you may have to hold the stock for a period of time due to the company’s insider trading policy.  

What is Meta's RSU Vesting Schedule?

Most clients we’ve seen at Meta have vesting schedules that operate under the 3-4 year semi-annual schedule.   Here’s Meta's vesting schedule:  Year 1: 25%  Year 2: 25%  Year 3: 25%  Year 4: 25% So the same 100 shares at Meta would be paid out like this:  Beginning of Year 1 | 25% payout for initial grant: 25 shares Beginning of Year 2 | 25% payout for Year 1: 25 shares  Beginning of Year 3 | 25% payout for Year 2: 25 shares  Beginning of Year 4 | 25% payout for year 3: 25 shares

Understanding Your 401(k) & IRA Retirement Savings Plans at Meta

Breaking Down The Tax Treatment of Each Contribution Option:

Meta 401(k) Automatic Enrollment:

Meta employees are automatically enrolled in the Traditional 401(k) at a rate of 10% from your pay and performance bonus on a pre-tax basis as a pre-tax Deferral Contribution for you.   You will also be automatically enrolled in an annual increase program to gradually raise your contribution rate from your pay (but not your performance bonus) by 1% each year.  You can change these parameters by logging in to your accounts at netbenefits.com/Meta 401k or Contact Fidelity at 800-835-5097.

Contribution Limits For Your Meta 401(k):

The IRS imposes limits on the money that you can contribute to your 401(k). 

Your contributions to the Traditional (Pre-Tax ) and the Roth accounts cannot exceed $23,000 per year combined.

For example, you can contribute $23,000 Traditional to your Meta 401(k) or $23,000 to your Roth 401(k), or $10,000 to the Traditional and $13,000 to the Roth, but the aggregate can be no more than $23,000. 

Helpful tip: if you moved to Meta midway through the year, your contributions at your previous firm count as part of this $23,000 so it’s important to include those figures in determining your eligibility.

After-Tax Contributions at Meta:

Meta also has an After-Tax 401(k) that you can contribute money into ON TOP OF the $23,000 that we’ve already discussed. 

The IRS allows you (as an employee) to contribute a maximum of $69,000 to your 401(k) across all contribution types. This includes: Traditional (Pre-tax) + Roth contributions, + company match + the After-Tax portion.

(Important reminder: an After-Tax 401(k) is separate and different from contributing to the Roth 401(k) as we’ve described it above.)

Mega Backdoor Roth IRA at Meta:

Here’s why we LOVE Meta's plan & in particular what you can do to maximize it. 

You can do what is called an in-plan conversion and convert these After-Tax dollars into the actual Roth 401(k) plan (a tax-free maneuver).

Then these funds won’t just grow tax-deferred, those earnings will also be tax-free when you take the money out in retirement (just like all other Roth accounts!) 

This creates a unique planning opportunity for high income earners at Meta. Book a Right Fit call with our team to learn more about your benefits at Meta.

Frequently asked questions:

401(k) Saving & Goal Mapping: 

Setting your participation amounts needs to be coordinated with your entire financial outlook and done so in a way that addresses your immediate & short-term financial goals.

How much you should be saving into your retirement accounts cannot be done in a vacuum!

You must first address important questions such as,

• Are you saving up for a house in 3 years and need help building your down payment to get there?
• Are your kids planning on going to private school in 3 years?
• Are you planning on retiring before you can access these funds at full retirement age (59.5)?

These are the sort of questions we seek to address as we design your Financial Life Plan®.

 If you need help mapping out your immediate, short term and long-term goals and savings plan, book your “Right Fit” introductory call today.

Want to learn more about maximizing your benefits at Meta?

To learn more about RSUs are and how they work in general, read here.

To get started on designing your financial road map, Book Your "Right Fit" Call now.

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*Information is provided for educational purposes only and does not constitute a recommendation. All data is derived from sources deemed reliable. This information on Meta benefits has been updated for 2024. Our firm is not affiliated with Meta or any other company referenced on this website. We work with individual employees from these organizations and have developed an expertise in supporting their unique financial needs and work benefits. References to these companies are for informational purposes only to indicate our familiarity with financial planning considerations common among employees in these industries.