The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: MVal on January 14, 2016, 03:45:57 PM

Title: First front load to 401K tomorrow...So excited!
Post by: MVal on January 14, 2016, 03:45:57 PM
2016 marks the first time I'll be Mustachian for a full year. Tomorrow is the first paycheck of the year and as long as HR did what they were supposed to, basically my whole check will be loaded into my 401K. I've decided to front load for the first four pay cycles to make hitting the maximum easier. I'm very excited to take advantage of buying shares in this low market time.

Here's to a prosperous and Mustachian 2016 for everyone! Cheers!
Title: Re: First front load to 401K tomorrow...So excited!
Post by: GGNoob on January 14, 2016, 04:37:37 PM
Congrats!
Title: Re: First front load to 401K tomorrow...So excited!
Post by: Late2TheGame on January 14, 2016, 07:53:33 PM
This is a great time to buy, congrats on putting yourself into this position!!

Late2TheGame
Title: Re: First front load to 401K tomorrow...So excited!
Post by: felizcortez on January 14, 2016, 09:06:55 PM
I also bumped my contribution up to 50%. 
Title: Re: First front load to 401K tomorrow...So excited!
Post by: MVal on January 15, 2016, 10:26:59 AM
Well, looks like HR didn't get to my request to change my contribution rate yet, so I got it all in cash again. If they can get it changed by next time, then I'll do 80% to the 401K until after the first check in March. I'm kind of mad at them for being so slow to honor my request since this was a big check with last year's excess PTO payout.

In the meantime, I've got a little extra money I need to pay off the credit card from Christmas, so I'll just use this check to get everything left hanging out from 2015 down to $0 balance again. It feels so good to be debt free with a climbing net worth!
Title: Re: First front load to 401K tomorrow...So excited!
Post by: catccc on January 15, 2016, 12:11:20 PM
You've probably already figured this in, but just in case: Be sure that front loading doesn't create an issue with fully utilizing your company match, if there is one.  And congrats on your progress!
Title: Re: First front load to 401K tomorrow...So excited!
Post by: relaxednature on January 15, 2016, 01:33:25 PM
same as catccc said, verify your company will match you(if your paying 100% up front), the way mine works is per quarter, so If I do 100% in first quarter then I wouldn't actually get fully matched.
Title: Re: First front load to 401K tomorrow...So excited!
Post by: onlykelsey on January 15, 2016, 01:36:05 PM
Quote
Well, looks like HR didn't get to my request to change my contribution rate yet, so I got it all in cash again.

I had the same problem, so I only contributed ~500 rather than the ~2000 planned.  On an upnote, I may have been overly aggressive with 2K a paycheck coming out, given my current checking account balance.  I overestimated the effect of my ~8% raise this year on my takehome pay.  This will give me time to reconsider.
Title: Re: First front load to 401K tomorrow...So excited!
Post by: MrsDinero on January 15, 2016, 01:48:40 PM
Congrats!  With baby #2 on the way in the fall, I'm planning to do the same thing (my company doesn't match).
Title: Re: First front load to 401K tomorrow...So excited!
Post by: Gone Fishing on January 15, 2016, 02:46:49 PM
Just made my first 50% contribution (max).  Too bad it does nothing for SS and Med taxes!
Title: Re: First front load to 401K tomorrow...So excited!
Post by: MVal on January 15, 2016, 03:42:21 PM
You've probably already figured this in, but just in case: Be sure that front loading doesn't create an issue with fully utilizing your company match, if there is one.  And congrats on your progress!

Oh yes, I've already looked into it. As long as I leave enough to put at least 5% in for all remaining pay periods, I'll get my full match for the year.
Title: Re: First front load to 401K tomorrow...So excited!
Post by: use2betrix on January 15, 2016, 04:12:22 PM
I'm doing similar. I'm putting 18% in from now til mid March. However, then I have to switch to 5% for the remainder of the year to get their 4% match, then that should have me maxed.

Unfortunately I can't fully front load because if I don't contribute, neither do they.
Title: Re: First front load to 401K tomorrow...So excited!
Post by: PhysicianOnFIRE on January 19, 2016, 12:19:00 PM
Good plan.  Sounds like you've done your homework. 

Last year, I checked with our plan administrator to make sure I would get the full match if I made the full $18k in contributions early in the year.  He assured me that yes, I would.

Lo and behold, the matching contributions were small and stopped completely when I stopped contributing.  I reached out again to the plan administrator and received a clarification.  I will eventually get the full match, but the vast majority will come in a true-up (due in the next few weeks).  The snafu worked in my favor since the markets are lower now, but that's just dumb luck.  This year, I am spacing my contributions out to get the full match in the same calendar year. 

I did frontload my 457(b) this year (no match).