🔥 HOT TIP! Spread out your 401k contributions through the year to avoid this nasty gotcha surprise. Let’s jam!
The gotcha surprise: if you reach your contribution limit before the end of the year and can no longer contribute, you lose your employer match!
If you’re like me, you might want to Just Do It like pulling a band-aid off. Go hardcore for a short period of time and be done with it! Max out those 401k savings. Yes! But this would be the wrong move.
If you reach your 401k contribution limits before the end of the year and cannot contribute any more that means that your employer is also not going to be making any matching contributions.
The financially wise move: spread out your contributions to your 401k to make sure that you get the match from your employer for the full year.
Calculator for 401k Contribution (Download)
Here’s my calculator that I use to make sure that my contributions and pace of contribution set me up to capture every dollar of employer match that I possibly can. All while still maximizing my contributions up to the IRS 401k contribution limits.
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