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> The match of employee contributions into their 401(k) plans is below average and made entirely in Amazon stock, which leaves employees dangerously exposed to

by icefox 11y ago

> The match of employee contributions into their 401(k) plans is below average and made entirely in Amazon stock, which leaves employees dangerously exposed to the company's fortunes. How about this other aspect of their 401k plan? I have never worked at a company that does that. Being so closely tied to your place of work financially is usually not recommended.

bpodgursky 11y ago
My employer matches in company stock too. It's not a big deal, you can exchange it immediately for a portfolio if you want via the 401k management portal (T Rowe Price for me). It's probably just politically easier for the board to issue more shares than to spend cash.
- s73v3r 11y ago
  But now you've got the added tax implications of having to sell stock right when you get it.
  - bdonlan 11y ago
    It's a 401k, there are no taxes upon sale.
  - pbhinder 11y ago
    It's not the tax that is the problem but the risk that an employee is taking with single company stock in their retirement portfolio.