I currently enroll in my company's 401k program and am completely maxxing it out; i.e. I'm putting in the full $17,500 per year. The 401k provider (Fidelity) offers an "annual increase program" where I can increase the percentage of my pay each year.

Is there any point in this program if I'm already contributing the full amount allowed? If anything, I would probably like an annual decrease program, since I may get raises each year.


Correct, the annual increase program won't help you. If your employer matches, it could actually hurt you because you might max out too early in the year and thus not receive the match for as many contributions.

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  • Agreed. I also think it's better to have your contributions spread out over the whole year for dollar cost averaging. Regarding the employer matching, my employer has a "true up" feature that supposedly puts in as much as possible even if I max out early. – stackoverflowuser2010 Apr 21 '14 at 21:32

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