AT&T's employee perks are made up of a lot of moving pieces. With over 20 years of working with AT&T employees and retirees in Texas and other parts of the United States, we understand how difficult it is to keep track of all your options. A couple good options are AT&T’s employee stock purchase and cash deferral plans.

These plans were made available to AT&T employees who are level three or higher, and the deadline to contribute to those plans was November 30.Here are the basic features of AT&T’s employee stock purchase and deferral plan:

  • You can contribute from 6% up to 30% of your eligible compensation
  • You can receive a 20% AT&T stock match


Given that there is no such thing as a 20% guaranteed return in the stock market, that return on your contributions is pretty reasonable. However, there is more to consider than simply the return when purchasing AT&T stock, as we will explore below.New call-to-action
AT&T Employee Cash Deferral Plan
You have access to the cash deferral plan in addition to the stock purchase plan. This might provide a source of a more consistent return on your investment.

Here are the basic features of AT&T’s employee cash deferral plan:

  • You can contribute from 1% up to 25% of your eligible compensation
  • For 2022, you can earn an interest rate of 2.91% on your cash deferrals


Keep in mind the deadline for electing deferrals is the last business day of December.

As you can see, you have a lot of alternatives with these programs and there are advantages that you should most likely take advantage of. Employees will differ in terms of whether they contribute, defer, or both, and in what quantities. The best choice for you will be determined by your personal circumstances such as your salary, tax bracket, and retirement date.

Therefore, if you choose to participate with either of these plans, consider working with an AT&T-focused advisor from your area who can help answer any questions you may have and personally review your case.

Note about Owning AT&T Stock
While owning a portion of a well-known corporation like AT&T can be satisfying, it can also pose a danger in terms of retirement planning if you hold too much of your retirement savings in AT&T shares. You wouldn't want your entire financial life – both your present and retirement income – to be dependent on the performance of a single corporation.
It is preferable to diversify your assets in your AT&T 401(k) plan. By diversifying your assets, you may minimize your total risk while increasing your exposure to growth. The appropriate asset mix is determined by your personal objectives and goals, as well as the degree of risk you are willing to accept.

In the end, each AT&T employee's position is unique, even if their benefit packages aren't.  Rather than relying on guessing or simply following what your coworker does, we would be delighted to assist you by organizing a consultation with one of our AT&T-focused advisers.

You can also learn more about navigating the AT&T 401(k) plan, AT&T pension plan and other AT&T retirement benefits by checking out our complementary retirement guide for AT&T employees.

The Retirement Group is not affiliated with nor endorsed by,,, or by AT&T. We are an independent financial advisory group that focuses on transition planning and lump sum distribution. Neither The Retirement Group or FSC Securities provide tax or legal advice. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

The Retirement Group is a Registered Investment Advisor not affiliated with FSC Securities and may be reached at

Tags: AT&T