Microsoft 401(k)

Investment Options

The Microsoft 401(k) offers a traditional mutual fund lineup and Fidelity BrokerageLink.  Fidelity BrokerageLink provides thousands of investment options, allowing you to have your Microsoft 401(k) account professionally managed.

Professionally managed accounts can generate 3% to 4% higher returns per year.

Have Your Microsoft 401(k) Account Professionally Managed

2025 Contribution Limits

• Under age 50                    $23,500
• Ages 50-59 or 64+            $31,000  [$23,500 + $7,500 catch-up]
• Ages 60-63                         $34,750  [$23,500 + $11,250 catch-up]

Pre-tax Contributions and Pre-Tax Catch-up Contributions

With pre-tax contributions and pre-tax catch-up contributions, you defer income taxes until you withdraw the assets.

Roth Contributions and Roth Catch-up Contributions

With Roth contributions and Roth catch-up contributions, you pay taxes on the contributions but withdrawals are tax-free.

Microsoft Match

Microsoft matches 50% on your contributions up to $23,500 of contributions in 2025.  The maximum match is $11,750 in 2025.  Microsoft does not match catch-up contributions. You must contribute $23,500 to receive your full match.

Microsoft matches vest immediately.

Microsoft Match Examples

Employee Contributes $10,000

Based on a $350,000 salary, you contribute $10,000. Microsoft will match your contribution by 50% or $5,000.

Employee Contributes 4% of Salary

Based on a $350,000 salary, you contribute $23,500.  Microsoft will match your contribution by 50% or $11,750.

Mega Backdoor Roth

In addition to your pre-tax and Roth contributions and the Microsoft match, you can utilize a Mega Backdoor Roth. You can contribute after-tax to your 401(k) up to the limit of all employee and employer contributions, then convert those after-tax contributions to a Roth IRA or Roth 401(k).

2025 Contribution Limits for All Employee and Employer Contributions

• Under age 50                    $70,000
• Ages 50-59 or 64+            $77,500
• Ages 60-63                         $81,250

Mega Backdoor Roth Examples

Employee Under the Age of 50

Based on a $350,000 salary, you can generate $70,000 in 401(k) contributions.  In addition to your pre-tax or Roth contributions and your Microsoft match, you can contribute $39,500 after taxes.

• Your pre-tax or Roth contributions                    $23,500
• Microsoft match                                                     $11,750
• Your Mega Backdoor Roth contributions          $34,750
• Total                                                                         $70,000

Employee Age 50-59 or 64+

Based on a $350,000 salary, you can generate $77,500 in 401(k) contributions.  In addition to your pre-tax or Roth contributions and your Microsoft match, you can contribute $39,500 after taxes.

• Your pre-tax or Roth contributions                    $23,500
• Your pre-tax or Roth catch-up contributions    $7,500
• Microsoft match                                                    $11,750
• Your Mega Backdoor Roth contributions          $34,750
• Total                                                                         $77,500

Employee Age 60-63

Based on a $350,000 salary, you can generate $81,250 in 401(k) contributions.  In addition to your pre-tax or Roth contributions and your Microsoft match, you can contribute $39,500 after taxes.

• Your pre-tax or Roth contributions                     $23,500
• Your pre-tax or Roth catch-up contributions     $11,250
• Microsoft match                                                      $11,750
• Your Mega Backdoor Roth contributions           $34,750
• Total                                                                          $81,250

Have Your Microsoft 401(k) Account Professionally Managed

Microsoft and Skloff Financial Group are not affiliated companies. While we make efforts to keep the information accurate, we make no guarantees. Please contact your benefits department to verify the information.