How Google Employees are Paid
Think of the mix of salary, RSUs, and benefits that comprise your compensation as distinctive sources of wealth. Each has unique properties—advantages, as well as limitations—that enable you to achieve particular goals.
Google 401(k) Plan
Navigating Google’s 401(k) plan can be daunting, especially with the diverse options and features available. Our guide offers clear, useful tips for any Google employee looking to improve their current plans.
GSUs
One of the most compelling aspects of Google’s compensation packages is the awarding of Restricted Stock Units (RSUs)—or Google Stock Units (GSUs) as employees like to call them.
How We Help
A key aspect of our role is helping you understand your benefits at Google and how each is a vital tool in helping you reach your financial goals. From diversifying out of your GSUs to completing the mega backdoor Roth strategy to balancing the tax complexities in your life, our guidance ensures you’re making the most of your compensation package.
Navigating your benefits
Navigating your benefits
- What benefit elections should I be making?
- Should I be in a HDHP with an HSA or a PPO?
- Do I need voluntary life insurance or long-term disability?
Saving for retirement
Saving for retirement
- Am I on track for retirement?
- How much should I save into my 401(k)?
- How should I invest my 401(k)?
- Should I be saving outside my 401(k)?
Managing tax implications
Managing tax implications
- Should I make Traditional or Roth 401(k) contributions?
- What are the tax implications of RSUs?
- When should I diversify out of my RSUs?
Balancing cash flow needs
Balancing cash flow needs
- How should I balance my short-term and long-term goals?
- Should I max out my 401(k) via paycheck or bonus?
- How do I utilize RSUs to fund my goals?
Are You a Good Fit?
- You want to leverage your equity compensation to build wealth to support your goals
- You have little headspace to think about finances (but know it’s important)
- You want to optimize savings through the right types of investment accounts
- You believe that personal relationships can be the driver behind achieving financial goals
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Interested in working through your Google benefits with Commas?
FAQs
What are restricted stock units (RSUs)?
A restricted stock unit (RSU – dubbed GSU) is an award of stock shares, usually given as a form of employee compensation. Because an RSU is given in the form of a grant, it is not fully realized until the shares have vested. As such, an RSU is an attractive way to recruit and retain talent. Once the shares are vested, you can transact them as you wish. The market value of your RSUs is included in your compensation.
What tax implications come with my GSUs?
Google offers its employees Restricted Stock Units (RSUs) of Alphabet that are taxable at ordinary income rates as they vest. Google does allow for shares to be withheld to cover taxes, to help employees pay the taxes at vesting. Once they vest, you will have to pay capital gains tax on any growth of the stock from the time it vests to the time you sell those shares.
What risks should I be thinking about with my GSUs?
GSUs can be an excellent way to build wealth, but having a large portion of your investments or net worth at the mercy of one company is risky. We call this concentration risk – when your financial outcomes are heavily influenced by one large, concentrated investment in an individual company. In most cases, this is also the company who is responsible for your income. We help clients find the best, most effective ways to build wealth while also reducing this risk.
Should I sell my GSUs as soon as I can?
Maybe! The key is making sure you utilize your GSUs in a way that matches your goals. Many of our clients do sell their company stock quickly to decrease exposure, minimize capital gains and to fund their other goals. It really comes down to what you hope to accomplish with your money. Our financial planning process is designed to tackle this opportunity and help you do it in the most efficient way.
What is the Mega Backdoor Roth Strategy?
The Mega Backdoor Roth is a strategy that can allow people to save more into a Roth 401(k) than the standard contribution limits ($23k in 2024). This strategy is not available to all workplace retirement plans, but Google’s plan does allow this!
After contributing the maximum retirement plan amount to your 401(k), you can make after-tax contributions to up to the total plan limit for the year ($69k for 2024). This includes the individual’s Traditional/Roth contributions, the Google 401(k) match, and the after-tax contributions.
Another reason why we LOVE Google’s plan – You can then convert the after-tax contributions into your Roth 401(k) via an in-plan conversion. This is a tax-free maneuver that allows those funds to grow tax free.
What is a Health Savings Account?
A Health Savings Account (HSA) is the only type of account that you have the potential to contribute money and never pay taxes on it. You can set aside pre-tax money and invest it, then if you use it on qualified medical expenses, it is 100% tax free.
What is the difference between Traditional and Roth Contributions?
The difference between Traditional and Roth contributions comes down to what is taxed when. Traditional contributions reduce your current taxable income, and your contributions and earnings are taxable upon distribution. Roth contributions are taxed initially, but contributions and earning are tax-free if certain requirements are met.
Let’s Get Started!
Step One: Introductory Meeting
In this non-committal meeting, find out if our services are right for you. This is a great time to let us know about your Google compensation package and if you have any specific financial goals.
Step Two: Sign Up
If you feel it’s a good fit, it’s time to sign on and begin the process towards achieving your financial goals. We’ll dive into your vision for the future and start working on a plan for you.
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“I have really appreciated all the support and help. [My advisor’s] timeliness, professionalism, and approachability have helped me feel confident and informed in my financial decisions while still being early in my career.”
All scores based on input from 131 completed surveys from 889 invitations in July 2024. These testimonials were provided by current clients of Commas. These clients were not compensated for these testimonials. No materials of conflicts exist since these clients were not compensated nor do they receive any other benefit for providing this content.