Microsoft 401k suggestions

New
dweep

New

dweep
Feb 21, 2019 8 Comments

New at Microsoft, setting up 401k on fidelity, is it a good idea to increase pre-tax contribution to 40-50%, I've heard Microsoft matches immediately? Does this make sense if I can afford it since it would reach the limit in a few months?

TC 200k

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TOP 8 Comments
  • This comment was deleted by original commenter.

    • Tumblr
      Olajuwo

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      Olajuwo
      Investing 1 million immediately today is far more effective than spreading that million monthly for the next 30 years. Dollar cost averaging really means invest when you can instead of trying intentionally to time the market by holding.
      Feb 21, 2019
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      Olajuwo

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      Olajuwo
      What? What you contribute to 401k has no difference throughout the year. Whether you contribute equally every month or all in December, your tax liability will remain the same for the year. The only limit is employer imposed max contribution per paycheck.
      Feb 22, 2019
  • Microsoft / Eng
    simulation

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    No matter how much you increase because 19K is Federal maximum you can do for given calendar year ...
    BTW, yes MSFT will match 50 cents on every single dollar you put there ..
    The more percentage you do , the earlier you will max out for that year ...which is OK by the way
    Feb 21, 2019 0
  • Yes, my first year I put 75%? of my paycheck toward 401k so i can get all thr matching before year end.

    They reduced the maximum to 65% now. But if you want to frontload the 401k contributions so that time in market is longer, yea they match right away.
    Feb 21, 2019 0
  • This comment was deleted by original commenter.

    • No you don’t. Microsoft stops the contributions automatically once you reach the IRS maximum (unless you have contributions from a previous job for example).

      Lots of people max out the 401k at the beginning of the year so then they’re done with it.
      Feb 21, 2019
    • Amazon
      PIPorGTFO

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      PIPorGTFO
      False. It's called front loading
      Feb 22, 2019
  • Cisco
    bitset

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    bitset
    Does msft has scheme to match 100% for upto 5% income. Cisco has that policy and it is very good. Lets say I make 100k. I contribute 4.5 k and Cisco put 4.5k. At the end of year, I see 9k in my 401k account
    Feb 21, 2019 1
    • Microsoft / Eng
      simulation

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      No ... Microsoft will match 50% of what you put in your 401K ..
      If you put 19K, which is IRS max, they will put 9.5K on top of that and end of the year you will see 28.5K in your account
      Feb 21, 2019