401(k) Match Maximizer is Here!
I have previously wrote about a little gotcha with my 401(k) plan that causes me to miss a portion of my employer's 401(k) unless I time my contributions perfectly.
I got word this morning that my employer is announcing a 401(k) Match Maximizer that will provide the full employer match regardless of when you hit the IRS contribution limit that is retroactive to January 1, 2006.
This feature helps in a couple of ways:
1) No need to worry about timing contributions just right to make sure you get the full employer match
2) While I don't necessarily subscribe to this - you can now pick another investing style (instead of dollar cost averaging) with your 401(k) contributions (without forgoing some of the employer match). For instance if the market had a sharp correction in the beginning of the year, in theory you could try to make the bulk of your 401(k) contributions (if not all) in the early part of the year, hit your IRS limit before June, and still receive the entire employer match. This is great for people that want to try and time the market.
Its all about flexibility - I like it and I am excited I no longer have to worry about trying to get every penny of my employer's contributions.
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