Friday, June 17, 2011

401K Matching About to Start

Just learned that my employer is about to start a matching program on my company's 401k. First thing I did: suspend my contributions to the program.

Why continue to invest in the 401k when I can hold off for a few months and then get free money on my contribution?

Don't worry, I still have every intention of maxing out my contributions to my 401k, just as I do every year.

401k matching is awesome.

Enjoyed this post? Please consider subscribing to Money and Such by free RSS Feed or by email. You can also follow me on Twitter.


Lucas said...

Do all of your employees know this or are you an insider?

Anonymous said...

You were contributing but you've stopped until the matching starts? That's not helping you in any way that I can see, unless your future contributions will include the amount you are now holding back. That might not work out very well. Most companies only match the first 1-5 percent, which is far less than any employee should be socking away, even with a long lead time to retirement. So, yes, company matches are great -- but not contributing until you get some matching money is cutting your nose off to spite your face, as the old saying goes. Good luck, whatever you decide to do.