How the True-Up Feature Can Enhance Your 401(k) Contributions
Wednesday, 5 June 2024, 12:00
Maximize Your 401(k) Contributions with the True-Up Feature
If you're maxing out your 401(k) early, you could miss part of your employer match without the true-up feature, experts say.
Potential Losses with Early Contribution
Contributing aggressively to your 401(k) without utilizing the true-up feature may result in missing valuable employer contributions.
Benefits of True-Up Feature
- Enhanced Matching: The true-up feature ensures you don't lose out on employer matches even if you front-load your contributions.
- Optimize Savings: By understanding and utilizing this provision, you can maximize your retirement savings efficiently.
Understanding how the true-up feature works is essential for long-term financial planning and securing your retirement.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.