Intel 401(k) FAQs
Working at Intel comes with some fantastic benefits, and your 401(k) plan is one of the most valuable tools in your retirement arsenal. But with all the options, contribution limits, and strategies available, it's easy to feel overwhelmed.
This guide will help you navigate your Intel 401(k) with confidence, so you can focus on building the retirement you deserve.
The Basics: Understanding Your Intel 401(k)
What types of 401(k) contributions can I make as an Intel employee?
Intel offers both Traditional Pre-Tax 401(k) and Roth 401(k) options. With Traditional Pre-Tax contributions, you get a tax break upfront by lowering your current income tax bill, but withdrawals in retirement will be taxed. With Roth 401(k) contributions, you pay taxes now but enjoy tax-free withdrawals in retirement.
How much can I contribute to my Intel 401(k) in 2025?
For 2025, you can contribute up to $23,500 to your 401(k). If you're 50 or older, you can make an additional "catch-up" contribution of $7,500, bringing your total to $31,000. Intel allows you to contribute up to 50% of your eligible compensation, subject to IRS limits.
What is Intel's current employer matching policy?
Intel matches all employee contributions dollar-for-dollar up to 5% of eligible income. This means that if you contribute at least 5% of your income, Intel will double your savings for free.
Bottom line: Always contribute at least enough to get the full employer match. It's free money you don't want to leave on the table.
When am I eligible to participate in Intel's 401(k) plan?
You can start contributing as soon as you're hired. Intel offers auto-enrollment at 5% of eligible compensation for new employees, with automatic increases of 2% annually until you're contributing 15%. However, you can adjust these settings at any time through your benefits portal.
What counts as "eligible compensation" for 401(k) purposes?
Your eligible compensation includes your base salary, quarterly profit bonus, annual profit bonus, and commissions. This is important to understand because both your contribution limits and Intel's matching contributions are calculated based on this broader definition of compensation, not just your base salary.
Can I change my contribution amount during the year?
Yes, you can change your 401(k) contribution amount at any time during the year through Intel's benefits portal. This flexibility is valuable if you receive a raise or bonus, or if your financial situation changes. Many employees increase their contributions when they receive RSU vesting proceeds or annual bonuses.
What happens if I contribute too much to my 401(k)?
If you exceed the IRS contribution limits, you'll need to withdraw the excess contributions before April 15 of the following year to avoid tax penalties. Intel's payroll system typically has safeguards in place, but it's your responsibility to monitor your total contributions, especially if you change jobs during the year or have other retirement accounts.
Vesting and Investment Options
When am I vested in my Intel 401(k) contributions?
You are immediately 100% vested in both your own contributions and Intel's matching contributions. This means the money is yours right away. There is no waiting period.
What investment options do I have?
Intel's 401(k) plan offers approximately 23 different investment options, including the Company Stock Fund (Intel shares). The plan is administered by Fidelity. You also have access to BrokerageLink, which gives you access to thousands of additional mutual funds from providers like Vanguard, PIMCO, and Eaton Vance, allowing for greater diversification.
Should I invest in Intel stock through my 401(k)?
While Intel stock is available as an investment option, financial advisors generally recommend limiting company stock to no more than 5-10% of your total portfolio. This helps avoid concentration risk—you don't want both your paycheck and retirement savings dependent on one company's performance. Consider diversifying across different asset classes and sectors.
What is BrokerageLink?
BrokerageLink is Intel's self-directed investment option that gives you access to thousands of mutual funds beyond the standard options. It's ideal if you want more investment choices, specific asset classes not available in the core lineup, or if you're implementing advanced investment strategies. However, it requires more hands-on management and investment knowledge.
How often can I change my investment allocations?
You can typically change your investment elections for future contributions at any time. For existing account balances, you can usually transfer between investment options daily, though some funds may have transfer restrictions or fees. Check Fidelity's specific rules for your plan, as excessive trading may be limited.
What fees should I be aware of in my Intel 401(k)?
Intel 401(k) plan fees are generally quite competitive compared to retail investment options. The plan includes investment management fees (expense ratios) that vary by fund, typically ranging from 0.02% to 1.00% annually. BrokerageLink options may have higher fees, so compare expense ratios before investing.
Does Intel offer target-date funds?
Yes, Intel's 401(k) plan includes target-date funds, which automatically adjust your investment mix as you approach retirement. These are often good default options for employees who want a "set it and forget it" approach. The funds become more conservative over time, shifting from stocks to bonds as your target retirement date approaches.
Meet Clients Who Chose Retirement
From worker to world traveler, snowboarder, and mountain biker!
Advanced Strategies: The Mega Backdoor Roth
What is the mega backdoor Roth strategy at Intel?
The mega backdoor Roth strategy allows high-income earners to contribute after-tax dollars to their 401(k) and convert them to a Roth account, providing tax-free growth and withdrawals in retirement. Intel offers employees an After-Tax Roth conversion feature, also known as the mega backdoor Roth.
How much can I contribute using the mega backdoor Roth strategy?
In 2025, the total contribution limit for a 401(k) is $70,000 (or $77,500 if you're over 50). This includes your employee contributions, employer contributions, and after-tax contributions for the mega backdoor Roth.
How do I use the mega backdoor Roth at Intel?
Here's the process:
Log in to your Intel benefits portal and elect after-tax contributions up to the annual limit.
Request an in-plan Roth conversion through Fidelity once after-tax contributions are made.
Monitor your contributions to avoid exceeding limits, and 4) Consult a tax professional to ensure proper handling.
Who should consider the mega backdoor Roth strategy?
This strategy is ideal for high-income Intel employees who are already maxing out their regular 401(k) contributions and want additional tax-advantaged retirement savings. It's particularly valuable if you're over the income limits for direct Roth IRA contributions. However, you should have sufficient cash flow to handle the immediate tax burden.
What are the tax implications of the mega backdoor Roth?
When you convert after-tax contributions to a Roth account, you'll pay taxes on any investment earnings that occurred between the contribution and conversion dates. To minimize this, many employees set up automatic conversions or convert frequently. The converted amounts then grow tax-free forever.
Additional Intel Benefits
How should I prioritize my Intel 401(k) alongside other benefits?
Before maximizing your mega backdoor Roth, ensure you've maximized your HSA contributions for triple-tax benefits. The strategy works well alongside SERPLUS (Intel's deferred compensation plan) and can be funded using RSU proceeds while maintaining portfolio diversification.
What is SERPLUS?
SERPLUS is Intel's deferred compensation plan available to Grade Level 10 employees and above. It allows you to defer up to 60% of your salary and 75% of any bonus or commissions, working similarly to a pre-tax 401(k) plan. While SERPLUS provides tax deferral, the mega backdoor Roth offers tax-free growth and withdrawals, making them attractive complements for long-term savings.
How do RSUs affect my 401(k) strategy?
When your RSUs vest, you'll owe ordinary income taxes on their full value. Many Intel employees use a portion of their RSU proceeds to fund their 401(k) contributions, including the mega backdoor Roth strategy. This can help manage the tax impact of vesting while building retirement wealth. However, be cautious about over-concentrating in Intel stock across all your accounts.
Should I prioritize my HSA or 401(k) contributions?
If you're eligible for an HSA through Intel's high-deductible health plan, maximize HSA contributions first. HSAs offer triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After maximizing your HSA and getting the full 401(k) match, then consider additional 401(k) strategies.
How does Intel's Employee Stock Purchase Plan (ESPP) fit with my 401(k)?
Intel's ESPP allows you to purchase Intel stock at a 15% discount twice per year, up to 10% of your eligible compensation. While this can provide immediate gains, don't let ESPP participation prevent you from maximizing your 401(k) match. Consider the total Intel stock exposure across ESPP, RSUs, and any Intel stock in your 401(k).
What about Intel's pension plan?
Intel's Minimum Pension Plan (MPP) has been phased out for employees hired after 2011 and has limited benefits for most current employees. Your 401(k) will likely be your primary source of retirement income.
How should I coordinate Intel benefits with my spouse's retirement plans?
Consider your household's total retirement picture. If your spouse has a 401(k) with different investment options or better fees, you might optimize at the household level. Also, coordinate mega backdoor Roth strategies if both spouses are eligible, and consider spousal IRA contributions if one spouse has lower or no earned income.
Meet Clients Who Chose Retirement
Setting a retirement date isn’t easy, but it’s a lot easier with a Fiduciary and a plan.
Loans, Withdrawals, and Distributions
Can I take a loan from my Intel 401(k)?
Intel's 401(k) plan typically allows loans up to 50% of your vested account balance or $50,000, whichever is less. Loans must be repaid within five years (longer for home purchases) through payroll deductions. While convenient, 401(k) loans can disrupt your retirement savings growth and create tax complications if you leave Intel.
What hardship withdrawals are available?
Intel's plan may allow hardship withdrawals for specific financial emergencies, like:
Medical expenses
Home purchases
Education costs
Preventing foreclosure
However, these withdrawals are subject to taxes and potentially penalties, and you'll need to provide documentation of the financial hardship.
When can I start taking distributions from my Intel 401(k)?
You can generally start taking penalty-free distributions at age 59½. If you retire after age 55, you may be eligible for penalty-free distributions under the rule of 55.
What are my distribution options at retirement?
Intel's 401(k) plan offers several distribution options: lump-sum withdrawal, systematic withdrawals over time, rolling funds to an IRA for more investment options, or leaving money in the plan if the balance is over $5,000. Each option has different tax implications and investment flexibility.
Should I roll my Intel 401(k) to an IRA when I retire?
Rolling to an IRA typically provides more investment options and potentially lower fees. However, Intel's 401(k) may offer unique benefits like institutional pricing, the ability to delay RMDs if you're still working, or creditor protections. A financial advisor can help you make the right choice for your situation.
What happens to my 401(k) when I leave Intel?
You can keep your 401(k) account with Fidelity after leaving Intel. To continue receiving important information about your account, you must contact Fidelity directly at (888) 401-7377 to update your personal information and address changes.
What about my Employee Stock Purchase Plan (ESPP) contributions?
If you leave Intel before the end of a subscription period, you'll receive a full refund of your ESPP contributions within two to four pay periods. Stock will not be purchased, and you won't receive interest on contributed money.
Tax Strategies and Considerations
Should I choose Traditional or Roth 401(k) contributions?
This depends on your current tax bracket versus your expected tax bracket in retirement.
If you expect to be in a lower tax bracket in retirement, Traditional pre-tax contributions might be better.
If you expect higher taxes in retirement or want tax diversification, Roth contributions could be advantageous.
Many Intel employees do a combination of both.
How do Intel's quarterly and annual bonuses affect my 401(k) contributions?
Since bonuses count as eligible compensation, they can push you closer to contribution limits and increase Intel's matching contribution potential. Consider increasing your 401(k) contribution percentage when you know a large bonus is coming to maximize the tax-deferral benefit.
What are the tax implications of RSUs and 401(k) planning?
When RSUs vest, they're taxed as ordinary income at your marginal tax rate. This can push you into higher tax brackets, making Traditional 401(k) contributions more valuable for tax reduction. Alternatively, if RSU vesting creates a high-income year, it might be a good time to do Roth conversions.
How can I minimize taxes on my Intel 401(k) investments?
Keep tax-inefficient investments (like bonds or REITs) in your tax-deferred 401(k), and tax-efficient investments (like index funds) in taxable accounts. This "asset location" strategy can improve your after-tax returns. Also, consider rebalancing within tax-advantaged accounts to avoid taxable gains.
What happens to my 401(k) taxes if I move to a different state?
Your Federal tax treatment remains the same, but state tax implications can vary significantly. Some states don't tax retirement distributions, while others do. If you're planning to retire in a different state than where you're currently working, consider the state tax implications of Traditional versus Roth contributions.
Should I work with a financial advisor?
Absolutely. With Intel's complex benefits package, including:
401(k) options
RSUs
ESPP
SERPLUS
…a fee-only fiduciary advisor can help you create a comprehensive strategy that optimizes all these moving pieces for you.
Ready to Save More at Intel?
Navigating Intel's comprehensive benefits package doesn't have to be overwhelming. With the right strategy and guidance, you can turn these valuable benefits into a solid foundation for your financial future.
At TrueWealth Financial Partners, we specialize in helping professionals like you save more for retirement. We can help you make the most of your 401(k), optimize your tax strategy, and give yourself the lifestyle you want in your golden years.
Ready to ensure you're not leaving money on the table? Schedule your free 15-minute intro call today, and let's create a comprehensive strategy that puts your Intel benefits to work for your retirement dreams.
Meet Clients Who Chose Retirement
Retiring at 55 takes a special strategy.