Contributing 80% of salary to 401k to max it up before the year ends?

VMware
101000100

Go to company page VMware

101000100
Oct 28, 2021 7 Comments

Contributing 80%-100% of salary to 401k to max it up(in November, December) before the year 2021 ends while using my savings for rent, food, etc. for 2 months.

Does it makes sense do that for the future to take advantage of compounding returns?

I already maxed out Roth IRA, also invested in regular brokerage account. I’ve been already contributing to 401k this year just enough to get full amount of the quarterly employer match so I’m not missing on that. I have at least a year of emergency fund in cash as well.

#personalfinance #investments

TC: 130k

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TOP 7 Comments
  • Facebook / Eng
    dynasty002

    Go to company page Facebook Eng

    dynasty002
    Yes. Just max it out. Its tax advantaged. Also try to max it out early in the year like I do. Time in the market beats timing the market.
    Oct 28, 2021 0
  • Google
    Mwux07

    Go to company page Google

    Mwux07
    Yes. Next time just set everything to 100% and do this for a week or two every January.
    Oct 28, 2021 1
    • VMware
      101000100

      Go to company page VMware

      101000100
      OP
      Then, I’d miss out on employer matches because they cap it to some amount quarterly. That’s why I didn’t consider doing that in the beginning of the year.
      Oct 28, 2021
  • VMware
    LGBFJB

    Go to company page VMware

    LGBFJB
    If you do it at the end of the year then it is fine. At the beginning - you could miss out on the company match I'd you don't stay full year and get the true-up
    Oct 28, 2021 0
  • VMware
    gung_ho

    Go to company page VMware

    gung_ho
    OP Location?
    I am int the same boat, looking to contribute enough of my salary to Roth 401K to max it out for the year and also to After-Tax , so that I can move it into Roth IRA.
    Looking for advice.
    Oct 28, 2021 2