Maximizing Your Meta Benefits: A Strategic Guide for 2025

Meta provides an extensive range of benefits that can enhance your wealth, manage risk, and secure your future. By integrating Meta’s compensation, retirement, and health benefits into your financial plan, you can better align these offerings with your long-term goals.

Equity Awards

Meta’s stock units can be a powerful tool to help you achieve your financial objectives and participate in the growth of the company. Income taxes apply as your shares vest and Meta will withhold taxes at a default rate of 22%, but be aware that your tax rate will increase to 37% if your supplemental income exceeds $1 million. If your vested shares push you into that higher tax bracket, consider making quarterly estimated tax payments or adjusting your tax withholdings directly through the broker portal.

Meta Restricted Stock Units (RSUs) are typically granted when you sign on, and are also included in annual compensation reviews in February each year. These February refreshers follow a formulaic system based on role, location, and performance. RSUs vest quarterly over a four-year period, generally in May, August, November, and February annually.

For some roles within Meta, there are trading blackout dates that limit sales to certain periods of the year. Typically, open trading windows begin the day after quarterly earnings reports and close on the last day of the month afterward.

If you’re subject to restricted trading windows, a 10b5-1 trading plan may help you automatically sell shares as they vest while staying compliant with insider trading policies.

Retirement Savings

Pre-Tax 401(k) and Roth 401(k)

Meta’s 401(k) plan allows you to contribute on a pre-tax or Roth basis, with an employee deferral limit of $23,500 in 2025. Employees aged 50 and over may make additional catch-up contributions of up to $7,500, and those aged 60 to 63 may contribute up to $11,250 in additional catch-up contributions, depending on plan provisions. The traditional pre-tax 401(k) option reduces your taxable income now and provides tax-deferred saving, but you will pay income taxes as you withdraw your funds, whereas if you contribute to the Roth 401(k) option, you will pay income taxes now but enjoy tax-free withdrawals in retirement.​

Rule of Thumb: If you expect your tax rate to be higher in retirement, it may be best to choose the Roth 401(k) now—or fund both types to benefit from tax diversification. Whichever plan (or combination) you choose, we suggest you make the maximum annual contribution, if possible, to maximize retirement savings.

Meta Matching

Meta provides a generous 50% match on employee contributions up to half the IRS limit (for a maximum match of $11,750). Matching contributions are immediately vested. If you are a highly compensated employee, your contributions may be subject to additional limitations.

After-Tax 401(k) (“Mega Backdoor Roth”)

In 2025, the IRS increased the total contribution limit for defined contribution plans to $70,000 (or $77,500 for those aged 50 and over and $81,250 for individuals aged 60 to 63). This total includes employee deferrals, employer matching contributions, and after-tax contributions.​

Meta permits employees to make additional after-tax contributions to their 401(k) accounts, allowing them to reach this overall limit.

Example: If you contribute the maximum employee deferral of $23,500 in 2025 and Meta matches 50% of that amount ($11,750), your total contributions would be $35,250. To reach the $70,000 limit, you could contribute an additional $34,750 in after-tax dollars.​

These after-tax contributions can be converted into Roth dollars through:​

1. Auto-conversion (set up through the plan portal): be sure to check the box for automatic conversions from the after-tax 401(k) to the Roth 401(k).
2. Manual in-plan conversion to Roth 401(k), or
3. Conversion to a Roth IRA.​

Once converted, both contributions and earnings can grow tax-free. If contributions remain unconverted, only the principal is tax-free upon withdrawal; earnings will be taxed.​

Meta employer 401(k) contributions are immediately fully vested, so if you were to switch employers, your full 401(k) balance is available to take with you as you leave.

Investing Your 401(k)

Meta’s 401(k) plan is administered by Fidelity, and you have the option to use the Fidelity BrokerageLink account for self-directed investing. You can have your financial advisor manage this account as part of your overall portfolio.

To set up a BrokerageLink account:

• Log into your Fidelity NetBenefits Account.
• Navigate to Accounts & Benefits -> Popular Tasks -> Managed investments.
• Select the BrokerageLink tab.
• After you click Open Account, a Fidelity representative can typically approve setup in under 15 seconds.
• You must also sign a Coldstream-provided third-party access form if the account is intended to be managed by Coldstream.

You can set up separate Roth and pre-tax BrokerageLink accounts, which can both be managed directly by Coldstream.

Employees are automatically enrolled at a 10% contribution rate upon hire. The default investment is the Target Retirement Fund nearest the year you reach the age of 65. You may want to select a different target-date fund, specific investments, or have your advisor manage the account depending on your retirement goals and risk tolerance.

Health Insurance

Meta offers multiple comprehensive medical plans based on your location:

• EPO, PPO, HDHP through Meritain (HDHP HSA-eligible)
• Kaiser HMO (California residents only)
• Kaiser (Washington residents only)
• HMSA (Hawaii residents only)

All plans include:

• Medical, dental, and vision insurance for employees and dependents
• On-site and nearby wellness centers and access to mental health apps
• Reimbursement options for health and wellness expenses (up to $2,000)
• Programs that support autism care, cancer care, and gender-affirming services
• 25 Lyra mental health sessions

Health Savings Account (HSA)

If you enroll in the Meritain HDHP, you gain access to an HSA through Optum. For 2025, HSA contribution limits increase to $4,300 for individuals and $8,550 for families, up from $4,150 and $8,300 in 2024.

Meta contributes:

• $750 for individual coverage
• $1,500 for family coverage

HSA funds grow tax-free, and withdrawals used for qualified medical expenses are also tax-free. The funds remain yours even if you leave Meta. Given their unique tax treatment and ability to invest contributions, HSAs can also be used to supplement your retirement health savings.

We recommend investing contributions in low-cost growth index funds, such as the Vanguard Institutional Index Fund, since these funds are often earmarked for long-term retirement healthcare expenses.

Flexible Spending Accounts (FSAs)

Meta offers a self-funded medical FSA through Optum. FSAs allow you to set aside pre-tax dollars to cover qualified healthcare or dependent care expenses. These accounts are ideal for covering anticipated, higher-cost medical or dental expenses, such as orthodontics, LASIK, or planned surgeries.

Note that FSAs are generally “use-it-or-lose-it” each year, although up to $640 of unused Medical FSA funds can roll over to the next year.

Life Insurance

Meta offers basic life insurance through Prudential:

• 3x base salary
• Spousal and child benefits

Disability Insurance

Basic Long-Term Disability (LTD)

Meta provides basic long-term disability (LTD) insurance through Lincoln:

• Covers 66.67% of base salary, capped at $20,000/month
• No waiting period for benefit eligibility
• Payable up to Social Security Full Retirement Age (FRA)
• Employee-paid premiums result in tax-free benefits (recommended)

Other Key Benefits

• Legal Plan: MetLife offers plans that address a wide range of services across money matters, home and real estate, family and personal, elder-care, estate planning, civil lawsuits, and traffic matters.
• Family Support: Four-month parental leave, family planning, and childcare assistance
• Business Travel Accident: Chubb offers an insurance program with a range of benefits.

Open Enrollment Reminders

• FSAs do not roll over year-to-year—you must re-enroll annually.
• Review and update your elections to take full advantage of new benefits and make sure your elections continue to align with your personal situation and objectives.

Final Thoughts

Meta offers one of the most comprehensive benefits programs in the corporate world. Making the most of these options, especially advanced strategies like the Mega Backdoor Roth or the self-directed Brokerage Link option, requires thoughtful coordination. If you have questions about how to optimize your Meta benefits in the context of your broader financial plan, consult with your Coldstream Wealth Manager.

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