My wife just became eligible for her 401(k) and we had intended to front load her contributions, but I am not sure this is possible if I understand her plan correctly. Relative provision is:
"The Company will make a matching contributions equal to 100% of your elective deferrals. The company will not match elective deferrals that exceed 2% of your eligible earnings... you must make elective deferrals to receive the match. Once the your elective deferral stops, the matching contributing stops"
If I understand this correctly, to maximize the match, she would have to structure her contributions so that the maxing out her 401(k) occurs simultaneously with her last pay check. This would result in her whole salary constituting "eligible earnings" and in obtaining the largest employer max.
Is the foregoing correct? We will of course confirm with her employer, but wanted to get my head around the issue first. Any help is appreciated.