If you are a good saver, you know the value of maxing out your 401(k) plan and making sure you get the employer match on your contributions. And if you’re a really good saver, you may be aware of the benefits of front-loading your 401(k) contributions, adding as much as possible to your plan early in the year. Front-loading maximizes your money’s time in the market, which should produce better returns for your 401(k) account in the long run.
But if you’re not careful with your front-loaded contributions, you could actually be missing out on a portion of your employer match. That’s “free money” you deserve as an employer benefit.
The mechanics of your 401(k) match
Let’s say you make $80,000 a year in salary. If your employer matches 4% of