Personal Investments • 401k Contribution Timing

Hello, my current employer matches $.50 cents on every dollar employees contribute on the first 6% of there base salaries. I max out my 401k each year by straight lining the annual contribution limit over the year. I will be eligible to receive a base salary increase in April.

We use ADP for payroll and John Hancock as the 401k administrator.

Should I forgo contributions in January-March since the match would be based on my salary pre-April raise? I would then straight line the contribution limit from "Post Base Increase"-December and get the match based on the increased base.

In theory this seems logical, however is the match based on cumulative base salary for the year (Jan-Dec) or base salary at the time of contribution (May-Dec)?

Thanks

Statistics: Posted by Bdouvs — Wed Dec 11, 2024 10:35 am — Replies 0 — Views 10

---