Maximizing Your Google Benefits: A Strategic Guide for 2025

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

Equity Awards

Google’s stock units (GSUs) can be a powerful tool for achieving financial objectives. Income taxes apply as shares vest, and Google will withhold the appropriate tax amounts, currently at a default rate of 22% for most employees. If your vested shares push you into a higher tax bracket, consider making estimated tax payments or adjusting your tax withholding directly through the broker portal (either Morgan Stanley or Charles Schwab).

GSUs typically vest monthly over a multi-year period. 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)

Google’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 catch-up contributions, depending on plan provisions. The traditional pre-tax 401(k) option reduces your taxable income now, whereas the Roth 401(k) option offers 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 provide tax diversification. Whichever plan (or combination) you choose, we suggest you make the maximum annual contribution, if possible, to maximize retirement savings.

Google Matching

Google provides a generous 50% match on employee contributions. 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”)

The IRS has increased the 2025 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.​

Google permits employees to make additional after-tax contributions to their 401(k) accounts, up to this overall limit. These after-tax contributions can be converted into Roth dollars (often referred to as a “Mega Backdoor Roth”) through:​

1. Auto-conversion (set up through the plan portal),
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.​

Example: If you contribute the maximum employee deferral of $23,500 in 2025, and Google 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.​

Investing your 401(k)

Google’s 401(k) is held at Vanguard, and you have the option to open a Schwab Personal Choice Retirement Account (PCRA) for self-directed investing. You can have your financial advisor manage this account as part of your overall portfolio.

To set up a PCRA:

• Log into your Google 401(k) Vanguard account.
• Navigate to “Review my brokerage accounts.”
• Click to establish a new PCRA.
• For assistance, call Schwab at 1-888-393-7272 or email pcisservice@schwab.com.

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

Health Insurance

Google offers five comprehensive medical plans:

• Anthem gHIP (HSA-eligible)
• Anthem PPO
• Surest PPO
• Kaiser (California residents only)
• Kaiser (Hawaii residents only)

Google also offers the following benefits to all employees:

• Medical, dental, and vision insurance for employees and dependents
• On-site wellness centers and access to mental health apps
• Employee Assistance Programs (EAP)
• Workplace accommodations

Health Savings Account (HSA)

If you enroll in the Anthem gHIP plan, you gain access to an HSA through HealthEquity. 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.

Google contributes:

• $500 for individual coverage
• $1,000 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 Google. Given their unique tax treatment and ability to invest contributions, HSAs can also be used to supplement your retirement health savings.

Within HealthEquity, 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)

FSAs allow you to set aside pre-tax dollars to cover qualified healthcare or dependent care expenses. Google offers both Medical FSAs (for those not enrolled in an HSA) and Dependent Care FSAs:

• The 2025 Medical FSA limit is $3,300 (up from $3,200 in 2024).
• The 2025 Dependent Care FSA limit is $5,000 (unchanged).

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.

These accounts are ideal for covering anticipated, higher-cost medical or dental expenses, such as orthodontics, LASIK, or planned surgeries.

Life Insurance

Google offers basic life insurance through New York Life:

• 3x base salary (up to $2.5M) at no cost
• Option to purchase up to 10x salary, with a maximum of $2.5M
• Elective spousal coverage up to $750K and dependent coverage available

Disability Insurance

Basic Long-Term Disability (LTD)

Google provides long-term disability (LTD) insurance through MetLife:

• LTD covers 65% of your base salary, capped at $20,000/month.
• There is a 182-day waiting period before you become eligible for benefits.
• Benefits are payable up to Social Security Full Retirement Age (FRA).
• Employee-paid premiums result in tax-free benefits (recommended).
• Employees may switch to employer-paid coverage within 31 days of hire or during Open Enrollment.

Supplemental LTD: Individual Disability Insurance (IDI)

Google also offers additional disability insurance through Unum as a way to supplement the Basic LTD group plan:

• The IDI replaces up to 65% of your total direct compensation, including bonuses and GSUs (up to $15,000/month).
• Benefits are subject to a maximum combined total of $35,000/month when paired with Basic LTD plan.
• Premiums are paid directly to Unum via bank draft.
• The policy is portable if you leave Google.

Other Key Benefits

Google offers a range of additional benefits to support employees:

• Legal Plan: Access estate planning and identity theft services
• Family Support: Parental leave and childcare assistance
• Employee Discounts: Electronics, travel, dining, and more
• Professional Development: Tuition reimbursement and learning platforms
• Charitable Matching: Google matches charitable gifts made by employees up to $10,000 annually

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.

Final Thoughts

Google 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 managing PCRA accounts—requires thoughtful coordination. If you have questions about how to optimize your Google benefits in the context of your broader financial plan, consult with your Coldstream Wealth Manager.

*Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and Certified Financial Planner™ in the U.S.

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