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Microsoft
Working for Microsoft introduces unique challenges vis-à-vis understanding your equity compensation, investing for retirement, and getting the most out of your benefits package.
Whether you are a new hire or a tenured Softie, Wealth45 offers the financial insight to guide the way and bring peace of mind.
- Should I participate in Microsoft’s ESPP?
- How should I think about the value of RSU grants?
- What about future compensation? What role does equity/RSUs play?
- Should I participate in Microsoft’s 401k retirement plan?
- Given Microsoft’s equity compensation model, how should I think about my investment portfolio differently?
You—as an employee—have a big bet on Microsoft.
Wealth45 provides information and resources to help bring clarity and focus to your financial life.
Microsoft FAQs
Microsoft’s 401(k) program
Microsoft’s 401(k) retirement plan for employees is managed by Fidelity.
- 20+ investment options available
- Always fully vested – no vesting period
- 50% match of employees pre-tax and Roth contributions
- BrightScope gives the plan an High rating (very good) for its peer group
Does Microsoft have a Employee Stock Purchase Plan (ESPP)?
Yes. The plan allows employees to purchase common stock at 90% of fair value every three months. You can purchase stock worth up to 15% of your compensation during the offering period.
What are Restricted Stock Units (RSU)?
An RSU is the right to receive a share of company stock after a vesting period is satisfied. They are offered to employees as a form of long-term compensation. The employee receives the stock, and is able to sell, once they have vested. RSUs are considered ordinary income on the day they vest.
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