When investing above the 401K company match pays off

I’m $230 richer! All because I invested a little more than the required amount to get my company match last year.

On Monday, I received a letter from my company that said:

Every year, your employer reviews matching contributions to the company US 401(k) plan to make sure employees receive the maximum contributions for which they are eligible. This process is a normal part of a 401(k) plan and is called a “true” match up.

You can be eligible for a true-match up for several reasons. Matching contributions can stop during the year if your reach the pretax/ROTH 401(k) contribution limits, choose to stop your contributions, or if your contribution percentage fluctuates during the year. If you start contributions mid-year and miss a number of eligible payrolls and potential match, you may also be eligible for a true match up.

Based on your eligible pay and the timing of the contributions you made in 2012, it was determined that matching contributions to your account different from the amount you were eligible to receive.

The company match was calculated at 100% of your pre-tax, ROTH 401(k) and/or after-tax contributions up to 3% of your Eligible Pay, and 50% on the next 2% of eligible pay you contribute.

You adjustment amount: $230.80

This is an automatic return on my 401(k) investment 🙂 I was so excited!!!
So, if you haven’t looked at your 401(k) contribution, you must! Figure out how much you can invest and do it! 🙂

Because they way things are going, we can only depend on ourselves.