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

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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I have to spread it out because my employer matches per pay period.

My wife’s employer matches per pay period, plus does a true up at end of year to ensure % of final salary by year end is contributed to the employee.

A friend of mine told me that his employer does not place the matching funds in his account until March of the next year (just before taxes are due). So you if you leave your job in January of 2024, you will miss out on all the matching funds you would’ve received for 2023. They also have a long time lag for paying bonuses. Basically, if you leave your job, you are forced to leave money on the table (either the 401K match or your bonus for the previous year). [/quote]

You don’t lose out on your match, if you leave at any point.  You get a pro-rated share if it’s a partial year and if you leave in January like your example, you get a full year match.[/quote]

Nope, that’s not what my friend told me about his company. They pay out 401K matching one time per year in one large lump sum for the previous year. If you are not employed with the company on the date of the payout, you do not receive your matching funds for the previous calendar year. So you lose out on a year of compounding contributions + if you leave before date of matching funds payout, you don’t receive ANYTHING. [/quote]

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