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I just found out about your site from PoF. I used to contribute an equal amount per paycheck in order to get the company match, dollar cost average, and have a large enough paycheck to meet other financial needs. Back then my company didn’t do the true-up.
After a certain time I started front loading, plus aggressively paying down my mortgage, because I had uncertainties about my job lasting through the year. The company had been sold once or twice already. Luckily my company eventually also started doing true-up, which was useful as I could see how much money I was leaving on the table by front-loading without it.
I’m still a fan of front loading, but I’d advise anyone whose 401(k) doesn’t have true-up to optimize their contributions so they continue to get the company match throughout the year. They can still do the bulk of the contributions earlier in the year, then adjust their contribution rate downwards for the latter part of that year.
Hi Lynne,
Yes! I totally agree with you and doing the bulk upfront and then adjusting to get the match is a great idea. No need to leave money on the table unless you plan to leave your job. Thanks for commenting.