If you max out your 401k ($23k), do you spread over 12 months or do it faster?

[Anonymous]

I have allocated the same percentage per pay period for years. It used to take the full 12 months to max, but over the years raises have made it so now it maxes by end of August (and gets earlier every year).

Employer contribution is a standard percentage of my total annual earnings regardless of my contribution.

[Anonymous]

When my employer had a true up I front loaded some, so I hit the max about October, maybe a bit earlier. My current employer doesn’t true up so I spread it out, though they are switching to a true up next year, so maybe I’ll go back to front loading. It is nice to see the bump in take home right before the holiday season hits.

[Anonymous]

My employer doesn’t have a true up so I spread it over 26 paychecks. Our bonuses are paid in Q1, and raises take effect in Q2, so I feel like I am constantly adjusting my 401k withholding to make sure I don’t hit the limit too early and lose out on the match.

And to make things even more exciting, at some point this year (they said Q3, but I think they are pushing it back), we are converting from 26 paychecks to 24, so I will readjust again.

Honestly, I think they do it on purpose to save a few bucks on the match.

[Anonymous]

I used to have to spread it out to get the full match, but now my company has a true-up at the end of the year to get the full percentage. So I front-load it a bit, usually finishing in September or so. I like having extra cash flow at the end of the year for winter vacations, backdoor Roth Ira, and holidays.

[Anonymous]

I do 2 lump sums 1 in July, one in December. I'm a business owner so th Decmeber one is once I know how much profit I can funnel in

[Anonymous]

My husband has a 401k at his work. He tries to max it out as fast as possible. This year is the first year that he has been eligible to max it out due to HCE restrictions at his last job. He will max it out by September.

I don’t have an employer sponsored retirement account so for now, I max out my traditional IRA in January and then I do a Roth conversion before investing the contribution. I’ll do that until Democrats make that illegal which they plan to do as soon as soon as they get control of the government and write another tax bill again.

I could have done a SEP IRA this year but haven’t yet because 7k is what I can afford to save out of my income and I don’t want the headache of setting up another account until politicians force me to.

[Anonymous]

I max out my Roth Jan 1. I don't get a 403 match and just put in about 2k a month. I am not eligible for the catch-up since I recently turned 50 so I will up my contribution amount.

[Anonymous]

I just spread it out over every pay period. I have always been militant about paying yourself first, especially after marrying a spender. I have paycheck contributions to 401k, 529 plans, and checking. I put my true up and EOY bonus into a brokerage. Other ways may be better, but I check my empower (formerly personal capital) account somewhat obsessively and like to see new contributions. I want to know that I'm spending net of retirement contributions each pay period.

[Anonymous]

My company deducts my contribution from my paycheck twice a month. You can either set up contributions the way I did, or you could just contribute whatever percent of your bonus (this only maxes out if your bonus is over 23k obviously.) actually, might make sense for me to contribute from my bonus once a year since the tax witholding rate is so much higher

[Anonymous]

Anonymous wrote:I max out my Roth Jan 1. I don't get a 403 match and just put in about 2k a month. I am not eligible for the catch-up since I recently turned 50 so I will up my contribution amount.

you can begin catch-up contributions in the *year* you turn 50. you don't have to wait to actually turn 50.

[Anonymous]

I spread it out even though my company’s contribution is safe harbor. I’ve thought about doing it all early in the year but that takes effort lol.