Completing 401K Contributions Early

Go to main Forum page »

AUTHOR: Alice Patrick on 6/22/2024

When you make out the form to contribute some of your income for a 401K or Roth 401K, your HR department will default to setting equal deductions for each pay period in the year. However, you can change this.

You can request a larger dollar amount per pay period so that your 401K contribution is complete before year end.

This can be helpful if you may be leaving your job, voluntarily or involuntarily, before year end. You’ll complete your contribution early. And, if your employer match occurs each pay period rather than at year end, you’ll get the entire match early.

Note: This only works if you can afford to have less net income per paycheck early in the year.

I first did this when my employer was struggling financially. When the company was acquired and I was laid off in April, my contributions and the employer match were equivalent to what would normally only have accumulated by August.

When I was next able to contribute to a 401K, I again set up an aggressive contribution. When I retired at the end of August, my contributions and the employer match were complete for the year.

Notify of
Oldest Most Voted
Inline Feedbacks
View all comments

Free Newsletter