MAXED Out BadAssity

[h2ogal]

Usually I don't post during the work day, Im not FIRED yet!!  But, I had to share...

Today I officially MAXED out my 401K for the year!  This is the first year I ever maxed before year end.  I had boosted my % contribution to the Max, over 50% of each paycheck. 

I was able to do this because my company does a year end True-Up.

It also helped my budget discipline a lot!  I have to admit there were times this year my checkbook balance was down to $30!!   There were lots of times we foraged in the fridge instead of grocery shopping or ordering pizza.  There were times when I had to hold bills until the next payday, instead of mailing straight in. 

Cheers to Paying Yourself First!  Woo!



OK, Back to Work!

[Bicycle_B]

Congratulations!  That is badass indeed!

[dandarc]

Nice!  Sent in the last of my "employee" contributions for my SoloK today as well.

[JLee]

That's awesome!

You have prompted me to check with my employer and see if they do a true-up as well. If that's the case, I may max the contribution amount and see if I can last (I keep a decent buffer in my checking account) until I max it out.

[BrickByBrick]

Pardon my ignorance, but what do yall mean by the employer does a year end 'true-up' on the 401K?  Financially speaking, what does that mean for your ability to contribute? .

[MDM]

Pardon my ignorance, but what do yall mean by the employer does a year end 'true-up' on the 401K?  Financially speaking, what does that mean for your ability to contribute? .

See http://www.forbes.com/sites/ashleaebeling/2012/01/13/the-big-401k-match-mistake/

[h2ogal]

"True Up" - At the end of the year my current  company makes sure I get the max matching contribution (6%), no matter how I spread out my contributions.   

I think its done in companies where commissions and bonuses make for a really variable payday, and difficulty in predicting the correct contribution rate.

I think its worth it to check with your HR dept.  I've been at this current job for several years and never knew they did this until I asked - it wasn't mentioned in the benefits overview.