Intel employees are eligible for a variety of comprehensive employee benefits
Updated for 2023.
As an employee at Intel, you have access to a range of benefits to support financial well-being. To help ensure that you’re taking full advantage of everything available to you, we’ve compiled a list of the most essential benefits that you should prioritize.
Leverage Your Intel RSUs
Your salary and cash bonus are only two-thirds of your total compensation. As your Restricted Stock Units (RSUs) begin to vest, they are treated as income and are taxed, even if you never sell them. If you do decide to hold onto those RSUs, it’s as if you’re given cold hard cash, and you’ve chosen to invest every dollar in Intel.
We recommend selling your vested RSUs to gain cash-flow flexibility, leverage your Intel tax-advantaged accounts (listed below), and maximize your ability to reduce taxable income. This strategy also helps you avoid keeping your money tied up in Intel stock, which can reduce your concentration risk and help you maintain a diversified portfolio.
Participate in Intel’s 401(k)
The first thing you want to make sure to do is to contribute as much as you can to your Intel 401(k).
In 2023 you can contribute the following amounts to your 401(k):
- If you’re under 50, you can contribute up to $22,500.
- If you’re 50 or older, you can contribute an additional $6,500 for a total of $30,000.
There are two ways that you can contribute to your Intel 401(k):
Traditional Pre-Tax 401(k): Make contributions before taxes. You get a tax break up front, lowering your current income tax bill; however, money withdrawn at retirement will be taxed.
Roth 401(k): Make contributions after taxes. With this option, when you withdraw savings for retirement, you are not taxed.
Intel’s 401(k) Employer Match
You earn the Intel match when you contribute to your 401(k). Intel will match up to 5% (temporarily reduced to 2.5% on 01/01/2023) of your salary. For example, if you make $200,000, Intel will contribute $5,000 (pre-tax) to your 401(k), assuming you also contribute at least $5,000.
This is essentially free money. You’ll want to make sure you are always contributing at least enough to earn the employer match.
Fully Fund Your HSA
We suggest you fully fund your Health Savings Account (HSA), which comes with three significant tax benefits. Contributions are tax-free, money grows tax-deferred, and you can withdraw money tax-free if the funds are used for qualified medical expenses.
The 2023 federal limit for combined contributions between you and Intel are:
- Individual: $3,850
- Family: $7,750
- If you’re 55 or older, you can contribute an additional $1,000.
You don’t have to make all contributions in the current tax year. You can max out your contribution by April 15, 2024, for your 2023 taxes.
Leverage the Mega Backdoor Roth Feature Within the Intel 401(k)
Three words – Mega Backdoor Roth. This feature within your 401(k) allows you to put after-tax dollars over and above your pre-tax or Roth contribution and the Intel match into your 401(k). You can then convert these dollars to Roth dollars and never pay tax again on these funds. The Mega Backdoor Roth can be an excellent way to save for retirement and reduce your future tax bill.
SERPLUS / Intel’s Deferred Compensation Plan
This is an exclusive benefit available to employees who are Grade Level 10 and higher. SERPLUS is similar to your 401(k), it allows you to invest pre-tax dollars and reduce your tax bill. When leveraged correctly, it can help reduce your tax bill by thousands in the year you make the deferral.
Eligible employees can defer:
- Up to 60% of their base compensation
- Up to 75% of their bonuses and commissions
Don’t miss the enrollment deadline! You can only enroll in SERPLUS during your benefits open enrollment period, which occurs in the fall.
Employee Stock Purchase Plan (ESPP)
Finally, there’s the Employee Stock Purchase Plan (ESPP), this benefit enables you to buy Intel stock at a discount. While it can be a great benefit, we recommend that you only enroll in the ESPP after you’ve fully leveraged all of the other benefits listed above.
Reach Out with Questions
By prioritizing these essential benefits, you can ensure that you’re making the most of everything that Intel has to offer. If you have questions about how to maximize your benefits, be sure to schedule time with one of our advisors.