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Subject:  Re: 401k matching Date:  10/13/2011  5:56 PM
Author:  ziggy29 Number:  69660 of 88543

>> 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.

Pros? Cons?

Do you know when they would fund the match? With every pay period, each quarter, once at the beginning, middle or end of the year? I'd want to use whichever approach gets me the most company match as early in the year as possible -- just in case you sever employment with them midway through the year, it would be nice to make sure you got as much employer match as you could before then.

As far as the big picture goes, if you're employed there for the entire year, it doesn't sound like it matters much. (If they were changing the other way -- from a single "maximum per year" to a "per pay period" contribution, you wouldn't want to max out your contributions before the last pay period to get all the match. But going in the direction you describe, it doesn't much matter.

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