Spread
While investing into 401k, you should be spreading your contribution throughout the year. Main reason for the spread is that we can't really predict the future. You don't know if the market is up or down 12 months from now and you would want to take advantage of whatever the market is at that point.
Sample 1
Here is how a sample spread may look if you are making $60,000 per annum as gross salary.
| Salary | $60,000.00 |
| 401K Contribution in percentage | 10% |
| 401K Contribution in amount | $6,000.00 |
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| |
| Maximum Allowed for Employee Contribution for 2015 | $18,000.00 |
| Net Contribution to 401k by Employee | $6,000.00 |
| Amount per paycheck (26 paycheck) | $230.77 |
| Amount per paycheck (24 paycheck) | $250.00 |
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