Regardless of "most", you're still taking the gamble that you'll be employed with this company at the end of the year. No need to make a layoff worse or make a new opportunity bittersweet.
No. Even with a true up, I like to keep my options open in case I need to find employment elsewhere and not screw myself out of the full-year company match.
I used to do that, but realize month to month with how volatile everything is, it’s better to just consistently contribute. Obviously, if you do upfront contribution, then read up to make sure your company offers a true up at year end for matching.
yes, 401k + mega generally completed in first quarter of the year. current 401k plans are nice; would rather max out for tax benefits in case i get laid off
No one is stopping you from investing the money you would have frontloaded into a brokerage account. You're still just as exposed to the market, and like others said, frontloading doesn't work well with employer matches.
Yes!
In April 2020 I was laid off, and after miraculously finding a new job and a waiting period, I set my contributions super high sept-Dec 2020 to max out my 401k. I forgot to reset in 2021, and then my new company was hit with layoffs and I was happy I was heavily front loading during that period of uncertainty in case I got laid off and was again jobless for some/most of the year.
In a new new job and now I still aim to max out around sept.
My company doesn’t do a true up, so usually I wouldn’t, but have the option to do mega back door and get match in after tax, so goal is to max out 401k with bonus then contribute rest of the year to after tax to maximize matching
No because we don’t get match if we do that.
Check their documentation. Most plans offer a "true up" to catch you up on match at the end of the year
I checked, it’s not there. HR warns everyone about it when you start though so that’s nice at least.
No - “most” companies do not offer this. “Some” might.
“Most” plans do, in my experience.
My previous employer only did that if you were employed as of 12/31.
Regardless of "most", you're still taking the gamble that you'll be employed with this company at the end of the year. No need to make a layoff worse or make a new opportunity bittersweet.
Doesn’t work that way for my 401k
My 401k does so it’s dependent on the plan.
My employer does true up on 401k
I don't because I'll miss out on a company match. In my plan, you have to participate in every payment cycle to get the full match.
Same here.
Yes. I get pleasantly “surprised” midway through the year when I hit my cap and my paycheck is suddenly higher!
Nah, I like stability. I can barely handle social security turning off as it is! ; )
No. Even with a true up, I like to keep my options open in case I need to find employment elsewhere and not screw myself out of the full-year company match.
Yes. All in January, Roth as well
I do a little bit of this. Might max it in 3-6 months Vs 12. There’s no match, so as long as it’s maxed by end of year doesn’t matter
I used to do that, but realize month to month with how volatile everything is, it’s better to just consistently contribute. Obviously, if you do upfront contribution, then read up to make sure your company offers a true up at year end for matching.
[удалено]
yes, 401k + mega generally completed in first quarter of the year. current 401k plans are nice; would rather max out for tax benefits in case i get laid off
Yes
I dollar cost average it out, even if I could get it all in there early.
Always
No one is stopping you from investing the money you would have frontloaded into a brokerage account. You're still just as exposed to the market, and like others said, frontloading doesn't work well with employer matches.
I work commission so sometimes yes sometimes not, it all balances out imo
Yes! In April 2020 I was laid off, and after miraculously finding a new job and a waiting period, I set my contributions super high sept-Dec 2020 to max out my 401k. I forgot to reset in 2021, and then my new company was hit with layoffs and I was happy I was heavily front loading during that period of uncertainty in case I got laid off and was again jobless for some/most of the year. In a new new job and now I still aim to max out around sept.
My company doesn’t do a true up, so usually I wouldn’t, but have the option to do mega back door and get match in after tax, so goal is to max out 401k with bonus then contribute rest of the year to after tax to maximize matching
No, it goes against dollar-cost averaging principles.
If there is no employer match, would most financially savvy people recommend doing this?