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I agree that you need to know the details of your plan. Our plan goes through changes every couple of years. Most recently, they changed from employer contributions per pay period to quarterly (about 30 days after their books close). Another term of the plan is that you must meet the annual 401K contribution limit or the company does not have to fully match, true up, the 6% plan amount. This year's limit is $16,500. Be sure your contribution isn't set to cap-off at the old rate, from two years ago, of $15,500, if you have this stipulation.

Another point is to know the fee structure. This year our company offered a self-choice mutual fund option. Returns are better, but the fee is $75 per purchase. If I dripped into the MF each pay period with my portion, I'd be racking up a ton of fees (over 2% at each buy). Consequently, I leave funds in the money market and move in larger sums to the MF each quarter, after the employer has matched.

Truly, the devil is in the details!

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