Amazon 2027 Open Enrollment: Making the Most of Your Amazon Employee Benefits

Amazon offers a comprehensive employee benefits package, covering everything from health care and financial wellness to family care. The Amazon 2027 open enrollment season, which typically takes place from mid-October through early November based on where you live, is the perfect time to review your benefits carefully and make informed choices that maximize their value for the year ahead.

With Amazon’s unique offerings like Restricted Stock Units (RSUs), a robust 401(k) plan, and tax-advantaged health savings and flexible spending accounts, there are numerous ways to tailor your selections for the year ahead. Here’s a guide to understanding and making the most of your Amazon employee benefits during open enrollment.

Understanding Your Amazon Company Stock & Employee Retirement Benefits

One of the standout perks of working at Amazon is the opportunity to own a piece of the company through the Employee Restricted Stock Unit (RSU) program.

Amazon grants RSUs to employees based on their job level and tenure, allowing you to build wealth as Amazon’s stock value grows. These units vest over time, meaning you’ll gain full ownership of the stock after a certain period of employment.

In addition to RSUs, Amazon offers a 401(k) plan through Fidelity with company matching. For every $1 you contribute (up to 4% of your salary), Amazon will add $0.50, allowing you to benefit from free money toward your retirement. These matching contributions vest after you’ve completed three years of service.

Furthermore, you can choose from pre-tax, Roth, or traditional after-tax contributions, giving you flexibility based on your tax strategy. To take full advantage of the company match, ensure you’re contributing at least 4% of your salary.

Making the Most of Your Amazon Company Stock Grants

While Amazon stock may seem like a great investment, holding too much of it can leave you vulnerable to concentration risk: the risk that comes from having too much of your wealth tied to a single company. Diversifying your portfolio across different types of assets can help manage risk and ensure your investments are aligned with your long-term financial goals.

If a significant portion of your wealth is tied up in Amazon stock, selling some of your vested RSUs each year may be a wise move. By selling gradually, you avoid timing the market and reduce the risk of selling at a low point. You can then reinvest the proceeds into other investments, like mutual funds or ETFs, to spread your risk and ensure you’re not overly reliant on the performance of one asset.

You might also want to consult a financial professional to discuss tax-efficient strategies for managing your stock holdings, such as utilizing tax-loss harvesting or donating appreciated shares to offset gains.

Reviewing Your 2027 Medical Plan Options

Amazon offers four medical plans for 2027: the Essential (formerly Basic), Premium, and Health Savings plans through Premera, and the Regional plan through Kaiser. Every plan includes $0 preventive medications, immunizations, and an annual wellness exam, along with mental health care, weight management, and fertility care.

Several plans have changes this year that are worth reviewing before you enroll:

• The Aetna network is no longer available under the Premium and Health Savings plans, so if your current plan uses the Aetna network, confirm that your doctors are covered before you make a selection.
• The Essential plan also moves to a new provider network, and the Premium plan now has a $250 per person deductible.
• All three Premera plans expand eligibility for weight management programs and add a new medication infusion and imaging network with $0 costs after the deductible.

Each plan balances monthly costs against out-of-pocket costs differently. Consider how often you see doctors and which medications you take to find the right balance for your household.

Maximizing Your Amazon Health Benefits

If you enroll in the Health Savings medical plan, you can contribute pre-tax dollars to a Health Savings Account (HSA), and Amazon will add $500 for individual coverage or up to $1,500 for family coverage.

For 2027, the IRS limit is $4,500 for individual coverage and $9,000 for family coverage, and Amazon’s contribution counts toward that total. Unlike a flexible spending account, your HSA balance rolls over each year, and you can invest it for future healthcare needs.

If you choose a different medical plan, a Health Care Flexible Spending Account (HCFSA) lets you set aside up to $3,400 in pre-tax dollars for eligible medical expenses in 2027, which can help reduce your overall taxable income.

If you have dependents, you might consider using a Dependent Care FSA to cover childcare or adult dependent care while you work, up to $5,000 per household ($2,500 if you’re married and file separately).

Keep in mind that your Dependent Care FSA contribution may be capped at $575 if your total compensation exceeds $160,000. You’ll need to spend FSA funds by December 31, so estimate your expenses carefully before choosing an amount.

Additional Benefits Worth Considering During the Amazon 2027 Open Enrollment Period

Amazon offers a wide range of employee benefits that can further support your financial and personal well-being.

Additional Insurance Coverage

• Disability insurance. Amazon provides disability insurance at no cost, which covers up to 60% of your income if you’re unable to work due to illness or injury. Short-term disability even includes pregnancy-related coverage, offering 100% of your salary for up to 14 weeks.
• Life insurance and accidental death and dismemberment insurance. These are also provided at no cost, each equal to two times your base salary (excluding bonuses and stock), up to $300,000. If your family relies on your income, you can buy supplemental life coverage of up to 11 times your salary (with a $2.2 million maximum), along with coverage for your spouse and children.
• Supplemental insurance. For extra protection, you can also enroll in supplemental hospital, critical illness, and personal accident insurance, which pay cash benefits you can use however you need, from medical bills to lost income.

Family Care Benefits

• Child, elder, and pet care referral services. You can access qualified caregivers for your loved ones through services like Sittercity, helping you balance work and home life.
• Adoption assistance. Amazon offers generous adoption assistance, reimbursing up to $5,000 for single-child adoptions and up to $10,000 for sibling-group adoptions.
• Paid parental leave. Amazon offers six weeks of paid parental leave after the birth or adoption of a child, which employees can take in one block or split into two increments within the first year. Additionally, the company’s Leave Share Program allows you to share any unused leave with your spouse or partner if they lack access to paid parental leave. Meanwhile, the Ramp Back Program allows birth parents and primary caregivers to ease back into work with a reduced schedule over eight weeks, with pay and RSU vesting adjusted accordingly.

Legal Services Benefits

During Amazon’s 2027 Open Enrollment period, you can also enroll in a legal services plan that provides unlimited attorney support for covered matters at a flat monthly fee.

• The Basic plan ($8 per month for you and your family) covers essentials like wills, powers of attorney, and identity theft.
• The Enhanced plan ($15.10 per month) adds trusts, tax audits, prenuptial agreements, and more.

These benefits can save you money and provide peace of mind for you and your family.

Navigating the Amazon 2027 Open Enrollment Period with Confidence

Amazon’s benefits package is comprehensive, supporting various aspects of your life, from healthcare to financial wellness. As you prepare for open enrollment, take time to review each benefit and consider how it can best serve you and your family in the coming year. Making informed choices now will set you up for a successful and secure future.

If you’re looking for personalized guidance on how to fully take advantage of these benefits, Simplicity Wealth Management is here to assist. We’ve worked with many current and former Amazon employees, helping them navigate the complexities of their RSUs and Amazon employee benefits. Book your complimentary Simplicity Session today to learn more and begin your financial journey.

For more tips and strategies for maximizing your Amazon RSUs, download the free Tech Equity Blueprint.