401k contributions ???

[texxan1]

So, I can put whatever I want into my 401k contributions... So here is an odd question

My take home is 190k per year.... so since I don't need the cash, would it be advisable to put 50% of my take home into my 401k in the first month of the year, then drop It back down to get my company match of 7% for the rest of the year... The earlier the max is in the account the better correct. Or is there some other calculation as what the best strategy to put it in is.

Let me know your thoughts

Tex

[Metric Mouse]

So, I can put whatever I want into my 401k contributions... So here is an odd question

My take home is 190k per year.... so since I don't need the cash, would it be advisable to put 50% of my take home into my 401k in the first month of the year, then drop It back down to get my company match of 7% for the rest of the year... The earlier the max is in the account the better correct. Or is there some other calculation as what the best strategy to put it in is.

Let me know your thoughts

Tex

Sounds like a fine plan.

[overwhelmed]

Just to be sure, I would check with your HR/benefits department to make sure they will still contribute the match in if you front load at the beginning of the year.

[liberty53]

401K contributions for employees are limited to $18,000/year if you are under 50 years old. If older than 50 you may contribute up to $24,000/year.

Most companies I have experience with provide a match on the first x% of pay. For example, a 50% match of the first 6% of pay. Under that method you would have to ensure that contributions were spaced out during the year to get the full benefit of the match., If your company will match 7% immediately then you should make the total 401K contribution as early in the year as possible to take advantage of extra compounding of gains for the year.

Edit:

I saw your other thread and realized you may be including potential after tax contributions. Some plans allow for that, and in that case your employee match and your total contributions can't exceed $53,000.

After tax contributions to a 401K are generally a good thing since they can be rolled into a Roth IRA.

[soccerluvof4]

^ ahhh! i just saw that on his other thread and asked how he was able to put 45k in his 401k because i never heard of that.