Meta RSUs are taxed as ordinary income at the federal level in the year they vest, based on the fair market value of shares on the vest date. Washington state has no personal income tax, so there's no state income tax on RSU income — a meaningful advantage over California-based Meta employees. However, Washington does impose a 7% capital gains tax on gains above $262,000 annually (indexed to inflation), which can apply if you sell appreciated RSU shares after holding them post-vest. For high-income Meta employees with significant equity, coordinating RSU sales with the state capital gains threshold is an important part of tax planning that's unique to Washington.

The most common fiduciary recommendation for tech company RSUs is to sell at vest unless you have a specific, documented reason to hold. RSUs are ordinary income on the day they vest — meaning you've already paid taxes on them at that point. Holding after vest is functionally equivalent to taking your vested proceeds and choosing to buy Meta stock with after-tax dollars, which concentrates your financial position in an asset that already drives your income and career. If you want ongoing Meta exposure, maintaining a defined allocation is reasonable — but the decision should come from a deliberate investment policy, not inertia. A fiduciary advisor can help you build a sell discipline that fits your full financial picture.

The mega backdoor Roth is a strategy that allows high earners to contribute significantly more to a Roth account than standard contribution limits allow. It works by making after-tax contributions to a 401(k) — above the standard pre-tax or Roth contribution limit — and then converting those after-tax dollars to Roth either within the plan or by rolling them to a Roth IRA. Meta's 401(k) plan supports after-tax contributions and in-plan Roth conversions, making the mega backdoor Roth available to Meta employees. In 2025, the total 401(k) contribution limit (including employee and employer contributions) is $70,000, which means the after-tax contribution space can be substantial for high earners who max out their standard deferral first.

For many Meta employees, the answer depends less on a specific age and more on accumulated equity, 401(k) balances, and the income those assets can sustainably generate. A common planning benchmark is the ability to replace 70–90% of pre-retirement income from portfolio withdrawals, Social Security, and any other sources. For high earners at Meta with significant RSU accumulation, retirement in their mid-to-late 50s is often financially achievable — but requires a multi-year runway of coordinated tax planning, Roth conversion strategy, and equity liquidation to execute efficiently. A fiduciary advisor can build a retirement readiness projection that shows exactly where you stand and what levers are available to close any gap.

Retirement income planning for Meta employees typically involves drawing from multiple account types — taxable brokerage accounts holding vested RSU and ESPP proceeds, traditional 401(k) balances, Roth accounts, and Social Security. The sequencing of withdrawals across these accounts has a significant impact on lifetime taxes. A common strategy is to spend from taxable accounts first in early retirement while completing Roth conversions from the 401(k), reducing the balance subject to required minimum distributions beginning at age 73. For Seattle-area retirees, Washington's lack of a state income tax means retirement income is taxed only at the federal level — a meaningful advantage that shapes how aggressively Roth conversions make sense.