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Investing/Strategies / Retirement Investing
|Subject: 401k matching||Date: 10/13/2011 5:18 PM|
|Author: ed1007||Number: 69658 of 81973|
My employer has changed the matching rules for next year.
Currently they match up to 5% of pay at a cap of $250 per month. They are changing this so that the cap is a yearly match of $3000 up to 5% of pay.
Currently I have enough deducted from each pay period to get the $250 match, this is below 5% of my pay.
The question is does it make sense to have 5% deducted from my pay each month until I hit the max $3000 for the year and then drop my deduction for the rest of the year so that my overall outlay is the same for the year. In effect I would be front loading the contributions and receipt of the match into the first half of each year. vs. spreading it out over the whole year.
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