Palantir

 
 

Brooklyn FI started working with several Palantir employees in Summer 2020 in anticipation of their direct listing. We work with many current or former Palantirians advising on a few hundred dollars million in equity compensation – via Incentive Stock Options, Non-Qualified Options, and Restricted Stock Units. It’s been a joy for our team, and we wanted to share some tips we’ve picked up along the way about their benefits plan.

Palantir provides a robust benefits plan for its full-time employees. We’re especially big fans of the after-tax 401(k) offered at Palantir which can enable employees to contribute up to $57,000 of tax deferred dollars to this unique retirement account.

Here we’ll provide you with some key highlights on your benefits and planning tips to consider this year. Making educated choices this open enrollment can save you money and help you navigate whatever challenges lie ahead next year. We’ve put together this guide to help as you make these choices - feel free to share it with your colleagues and friends who may find it helpful.

Please note that benefits are subject to change at any time.

HEALTH, DENTAL, and VISION

Palantir offers health, dental, and vision coverage to employees and their families. For a full glossary of terms that you may find in your plan documents, check out our page on health insurance coverage here.

Which healthcare plan you choose depends on a variety of factors:

  • How often you anticipate using your insurance

  • Cash flow needs

  • Tax considerations

If you rarely go to the doctor aside from an annual physical, and don’t take prescription drugs, an HSA-compatible plan may make sense - and allow you to stash away savings tax-free for medical costs later in life. However, if you want to know that a few trips to a specialist will simply cost your co-pay, and not a few thousand dollars, the PPO plan will have minimal impact on your cash flow. 

Should you choose a plan that’s not HSA compatible, you may still be able to contribute to a Flexible Spending Account (FSA). FSAs allow you to pay for out-of-pocket medical costs on a pre-tax basis.

BKFI Tip: If available, consider electing the HSA plan, maxing it out every year, and paying for your expenses out of other savings to maximize the tax-free growth of the HSA!

DEPENDENT CARE BENEFITS

Palantir provides a Dependent Care FSA as well. This allows pre-tax funds to be set aside for childcare expenses - up to $5,000/year. If you have kids in daycare, or after-school care, this can save you some money in taxes.

BKFI Tip: Both Dependent Care and Healthcare FSAs are ‘use it or lose it’ meaning the contributions must be spent before March 15th of the year following your contributions. For example, 2021 contributions must be spent by March 15th, 2022 or they’ll be forfeited to your employer.

LIFE INSURANCE

As part of your robust benefits plan, Palantir provides 2x your annual salary in life insurance - up to $1,000,000. You can purchase additional coverage of up-to $500,000 (or 5x earnings) of supplemental life insurance. Spousal voluntary life insurance is also available, up to a $250,000 limit. 

BKFI Tip: Diversification matters. No, we aren’t talking about investments, we’re talking about life insurance. If you need life insurance, be sure not to link all of it to your employer’s coverage. Consider getting your own policy that you can keep even if you leave your job. 

Bonus BKFI Tip: Don’t forget to name a beneficiary when setting up your employer-sponsored life insurance coverage. Make sure the funds go where you want them, should something happen to you. 

DISABILITY INSURANCE

Palantir also provides both short-term and long-term disability coverage. Both cover up to 66.6% of your pre-disability salary. 

BKFI Tip: When your employer pays the premiums for disability insurance, the benefits are taxable to you when you receive them. Consider what 66.6% of your pay is, and then imagine income taxes coming out of that - that’s what your take home would be under a long-term disability plan. 

RETIREMENT PLANNING

Palantir’s retirement plan is administered by Fidelity and does offer a variety of contribution options. The plan allows for both pre-tax and Roth contributions, up to a maximum of $19,500. Employees age 50 or older can make a catch-up contribution of up-to $6,500 annually. 

The plan also permits after-tax contributions that allow you to contribute above the annual maximum. By using the after-tax contribution feature, you can potentially save an additional $37,500 in a tax-advantaged manner that can later be rolled into a Roth IRA - also known as a Mega Backdoor Roth.

BKFI Tip: Have you maxed out your 401(k) for this year? If not, there’s still time to go in and update your contributions.

Bonus BKFI Tip: Review your 401(k) beneficiaries annually and make sure they match your wishes. 

LEGAL PLAN

For a modest monthly fee, you can access a nationwide network of attorneys via the MetLaw plan for a range of legal issues and chat with an attorney on the phone or in-office. 

BKFI Tip: Starting a family? Buying a home? You’ll likely need an attorney to draft estate planning documents or review your real estate contract. Legal plans like these often provide this service at little additional cost.