Amazon matches 50% of the first 4% of eligible pay that an employee contributes to the Amazon 401(k) plan, which works out to an employer contribution of 2% of your pay once you contribute at least 4%. Amazon's matching contributions vest after three years of service, and the plan is administered by Fidelity. For the 2026 tax year the IRS lets you contribute up to $24,500 of your own money ($32,500 if you are 50 or older, and $35,750 at ages 60 to 63), and total contributions from you and Amazon combined are capped at $72,000.
That is the short answer. The rest of this guide, from the Levels.fyi team and our negotiation coaches, covers what the match is worth in dollars, the vesting catch, the mega backdoor Roth, and how Amazon's plan compares with the other large tech employers on Levels.fyi.
How much does Amazon match on your 401(k)?
The formula is 50% of the first 4% of eligible pay. Two things follow from it:
- Contribute at least 4% of your pay and you receive the full match, which equals 2% of your pay. Contributing more than 4% earns no additional match.
- Contribute less than 4% and you leave part of the match behind: at 2% you get a 1% match, and so on.
A worked example with a $160,000 base salary:
| Amount | |
|---|---|
| Your contribution at 4% | $6,400 |
| Amazon's match (50% of that) | $3,200, or 2% of base |
| Your contribution at the 2026 IRS maximum | $24,500 |
| Amazon's match (still capped at 2% of pay) | $3,200 |
The match is a percentage of your pay, not of what you contribute, so maxing out your own contributions does not increase it. Because the IRS also limits the compensation a plan can count ($360,000 for 2026), the most Amazon will match in a year is $7,200.
When does the Amazon 401(k) match vest?
Your own contributions are always 100% yours. Amazon's matching contributions vest after three years of service, a three-year cliff. Leave before your third anniversary and you forfeit the unvested match.
This matters more than it looks. Among the largest tech employers tracked on Levels.fyi, Meta, Google, and Microsoft vest their match immediately. If you expect to stay at Amazon for less than three years, value the match at zero when you compare offers.
2026 IRS 401(k) limits
| Limit (2026) | Amount |
|---|---|
| Employee contribution (pre-tax plus Roth) | $24,500 |
| Catch-up, age 50 and over | +$8,000 ($32,500 total) |
| Catch-up, ages 60 to 63 | +$11,250 ($35,750 total) |
| Employee plus employer combined (IRC 415(c)) | $72,000 |
| Compensation that can be counted for the match (IRC 401(a)(17)) | $360,000 |
Amazon's match does not count toward your $24,500 employee limit. It counts toward the $72,000 combined cap, which is also the room that after-tax contributions use.
Mega backdoor Roth at Amazon
Amazon's 401(k) plan allows after-tax contributions, which you can convert to Roth. This "mega backdoor Roth" lets you put money into a Roth account well beyond the $24,500 employee limit, up to the $72,000 combined cap for 2026 minus your own pre-tax or Roth contributions and Amazon's match.
Using the $160,000 example: $24,500 (your contribution) plus $3,200 (Amazon's match) is $27,700, which leaves up to $44,300 of room under the combined cap. The plan sets its own ceiling on after-tax contributions as a percentage of pay (it was 10% of base pay when this guide was first written in 2021), so confirm the current percentage in your Fidelity NetBenefits account before you plan around it.
Why bother: money you save beyond your 401(k) usually lands in a brokerage account, where dividends, interest, and capital gains are taxed every year. After-tax 401(k) money converted to Roth grows and comes out tax-free in retirement. To use it, elect after-tax contributions in NetBenefits and have Fidelity convert the after-tax balance to Roth; converting promptly keeps the taxable earnings on those dollars close to zero.
How Amazon's 401(k) compares with other tech companies
Formulas below reflect benefits reported by employees on Levels.fyi; the dollar column uses the Levels.fyi US software-engineer median base salary of $165,000 and the 2026 IRS limits.
| Company | Match formula | Employer money at a $165,000 base | Vesting |
|---|---|---|---|
| Amazon | 50% of the first 4% of pay | $3,300 | 3-year cliff |
| Meta | 50% of everything you contribute, up to the IRS limit | up to $12,250 | Immediate |
| 50% of everything you contribute, up to the IRS limit (or 100% of the first $3,000 if greater) | up to $12,250 | Immediate | |
| Microsoft | 50% of everything you contribute, up to the IRS limit | up to $12,250 | Immediate |
Amazon's formula is the weakest of the four on both dimensions: it caps the match at 2% of pay, and it makes you wait three years to keep it. Compare every company's formula on the Levels.fyi 401(k) match page, or read our ranking of FAANG 401(k) plans.
Other parts of an Amazon offer to weigh
Amazon's compensation structure is unusual, so weigh the 401(k) alongside the rest of the package. According to Levels.fyi data:
- Base salary is capped at $350,000 for all employees regardless of level, and Amazon's base pay is not the highest among large tech companies. Current pay by level is on the Amazon software engineer salary page.
- Sign-on bonus: Amazon typically pays a sign-on bonus spread over the first two years, which props up years one and two while the stock vests slowly.
- RSUs vest on a back-loaded schedule: 5% in year one, 15% in year two, then 40% in each of years three and four. If you leave early, you leave most of the grant behind, so read the vesting schedule on the Amazon company page before you compare an Amazon offer with one that vests evenly.
- Other benefits: the full list Amazon employees have reported, with an estimated annual value, is on the Amazon benefits page.
Negotiate the whole package, not just the base
A 401(k) match worth $3,300 a year is small next to the differences in stock and sign-on bonus between offers, and those parts are negotiable. Even modest differences compound into large gaps in wealth over a career. The Levels.fyi salary negotiation service pairs you with an experienced recruiter who negotiates Amazon offers regularly; book a one-on-one consultation when you have an offer in hand.
Frequently asked questions
How much does Amazon match on a 401(k)? Amazon matches 50% of the first 4% of eligible pay you contribute, which equals 2% of your pay once you contribute at least 4%. On a $160,000 salary that is $3,200 a year.
Does Amazon's 401(k) match vest immediately? No. Amazon's matching contributions vest after three years of service. Your own contributions are always fully yours.
What is the maximum Amazon 401(k) match in 2026? $7,200, which is 2% of the $360,000 compensation limit the IRS allows a plan to count for 2026.
Does Amazon offer a mega backdoor Roth? Yes. Amazon's plan accepts after-tax contributions that can be converted to Roth, within the IRS combined limit of $72,000 for 2026 and the plan's own after-tax percentage cap.
Does Amazon's match count toward my $24,500 contribution limit? No. The $24,500 limit covers only your own pre-tax and Roth contributions. Amazon's match counts toward the separate $72,000 combined limit.
Sources: Amazon's match formula and vesting as reported by Amazon employees on Levels.fyi; 2026 contribution limits from IRS Notice 2025-67. Last updated October 26, 2026.