Potential Financial Steps for T-Mobile Employees in September
By Kevin Estes
How is it September already?!
The good news? We still have a third of the year left!
Potential Steps for T-Mobile Employees this Month
Five steps T-Mobile employees might take in September include:
Select Employee Stock Purchase Plan (ESPP) contribution %
Book Thanksgiving plans
Start benefits and insurance review
Replenish emergency fund
Schedule remaining Paid Time Off (PTO)
Select ESPP Contribution %
Participating in the Employee Stock Purchase Plan (ESPP) may not be right for everyone. Nonetheless, it’s worth considering.
The primary benefit is a 15% discount off the lower of the price at the beginning and end of six months.
Let’s say a stock’s price is $200.
If the stock stays the same over six months, it would be purchased at $170 and have a built-in $30 gain.
If the stock price rises to $220, it would be stil purchased at $170 and have a larger built-in $50 gain.
If the stock price falls to $180, it would be purchased at $153 and have a smaller built-in $27 gain.
Disadvantages
Some disadvantages of participating in an Employee Stock Purchase Plan include:
reduces cash flow
locks up money — usually until purchase
increases taxes, especially if the shares are sold right after purchase
“What If I’m Laid Off?”
Unfortunately, there have been layoffs at T-Mobile. There’s bad news / good news with the ESPP.
Bad news: a participant no longer employed on the purchase date misses the opportunity to buy at a discount.
Good news: the participant will instead get the cash back. It’s almost like a small - yet growing! - emergency fund.
For more, check out:
How Does an ESPP Work?
Are ESPPs Underrated?
Own Stock or Contribute to ESPP?
Book Thanksgiving Plans
It’s important to plan ahead for Thanksgiving travel:
Hotels and short-term rentals fill up, especially at popular locations.
Last-minute flights are normally more expensive.
People get busy.
Avoid the drama. Book now.
Start Benefits and Insurance Review
Open enrollment is coming soon! Now’s a good time to check on your benefits.
Are you expecting any major expenses?
This year: If you’ve already met your health insurance deductible, try to move healthcare expenses up into 2024.
Next year: You may need to increase your coverage to pay for higher upcoming expenses.
Do you have “use it or lose it” funds?
FSA = Flexible Spending Account. Funds need to be used in 2024. (with a possible $640 carryover to 2025)
HRA = Healthcare Reimbursement Arrangement. Funds also need to be used in 2024. (also with some carryover)
HSA = Health Savings Account. Funds are NOT “use it or lose it” and don’t to be spent this year.
If you currently have a large FSA or HRA balance, would it make sense to reduce your contribution with open enrollment?
For more, check out:
Pros and Cons of a Health Savings Account
How Disability Insurance Works!
Replenish Emergency Fund
Huzzah for all you accomplished this summer!
Those activities may have depleted your emergency fund. It could be time to top off cash reserves heading into the holiday season.
Restricted Stock Units
Recently issued T-Mobile RSUs are now vesting every six months, which is good news. Many employees just had some stock vest! Those shares might fund an emergency and opportunity account.
For more, check out:
Is It Worth Holding Employer Stock?
What to Do With RSUs?
How Are RSUs Taxed?
Social Security Maximum
Reaching the Social Security income maximum of $168,600 for 2024 might also help! About 6% of covered workers earn more than the Social Security taxable income each year.
Schedule Remaining PTO
“Use it or lose it” doesn’t just apply to spending and reimbursement accounts.
Paid Time Off (PTO) is there for a reason. Use it!
T-Mobile employees can usually roll over up to two weeks (80 hours). However, that limit has fluctuated throughout the years:
as low as 40 hours
as high as 120 hours (COVID-19, merger)
Play it safe and plan to carry over no more than 40-80 hours.
Scheduling PTO early also helps avoid scheduling conflicts with teammates. Call dibs!
If you’re interested in a review of your specific situation…
Disclaimer
In addition to the usual disclaimers, neither this post nor these images include any financial, tax, or legal advice.
