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

2026 Contribution Limits

Under age 50	$24,500
Ages 50-59 or 64+	$32,500  [$24,500 + $8,000 catch-up]
Ages 60-63	$35,750  [$24,500 + $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 $24,500 of contributions in 2026. The maximum match is $12,250 in 2026. Microsoft does not match catch-up contributions. You must contribute $24,500 to receive your full match.

Microsoft matches vest immediately.

Microsoft Match Examples

Employee Contributes $10,000

Based on a $360,000 salary, you contribute $10,000. Microsoft will match your contribution by 50% or $5,000.

Employee Contributes $24,500

Based on a $360,000 salary, you contribute $24,500. Microsoft will match your contribution by 50% or $12,250.

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).

2026 Contribution Limits for All Employee and Employer Contributions

Under age 50	$72,000
Ages 50-59 or 64+	$80,000
Ages 60-63	$83,250

Mega Backdoor Roth Examples

Employee Under the Age of 50

Based on a $360,000 salary, you can generate $72,000 in 401(k) contributions. In addition to your pre-tax or Roth contributions and your Microsoft match, you can contribute $35,250 after taxes.

Your pre-tax or Roth contributions	$24,500
Microsoft match	$12,250
Your Mega Backdoor Roth contributions	$35,250
Total	$72,000

Employee Age 50-59 or 64+

Based on a $360,000 salary, you can generate $80,000 in 401(k) contributions. In addition to your pre-tax or Roth contributions and your Microsoft match, you can contribute $35,250 after taxes.

Starting in 2026, if your wages from the preceding year (2025) exceeded $145,000 (indexed to $150,000–$160,000 depending on final IRS inflation adjustments, though $145,000 is the base threshold), any catch-up contributions must be made on a Roth basis.

Your pre-tax or Roth contributions	$24,500
Your Roth catch-up contributions	$8,000
Microsoft match	$12,250
Your Mega Backdoor Roth contributions	$35,250
Total	$80,000

Employee Age 60-63

Based on a $360,000 salary, you can generate $83,250 in 401(k) contributions. In addition to your pre-tax or Roth contributions and your Microsoft match, you can contribute $35,250 after taxes.

Starting in 2026, if your wages from the preceding year (2025) exceeded $145,000 (indexed to $150,000–$160,000 depending on final IRS inflation adjustments, though $145,000 is the base threshold), any catch-up contributions must be made on a Roth basis.

Your pre-tax or Roth contributions	$24,500
Your Roth catch-up contributions	$11,250
Microsoft match	$12,250
Your Mega Backdoor Roth contributions	$35,250
Total	$83,250