Merck professionals: Are you maxing out your 401(k) too early? Learn how contribution timing could impact your employer match—and how to avoid leaving money on the table.
If you’re aiming to max out your 401(k) contributions each year, you’re already ahead of the curve. But there’s a hidden risk that many high earners overlook—especially those receiving bonuses or mid-year raises.
Most companies don’t match your 401(k) contribution in a lump sum. Instead, they match per paycheck. In those cases, if you front-load your contributions and hit the IRS limit early (let’s say by May or June), your contributions—and your company match—stop for the rest of the year.
That’s free money left on the table.
At Merck and other large employers, this can happen more often than you think, especially after a raise, a strong bonus, or when you bump up your contribution percentage. These income changes can speed up how quickly you hit the annual limit, potentially cutting off your employer match months too soon.
The Solution? Smart Contribution Timing.
Rather than maxing out early, consider spreading your contributions evenly across the full calendar year. That way, you’re contributing each pay period—and capturing the full employer match along the way.
It’s a simple adjustment, but one that can have a significant long-term impact.
When Should You Reevaluate Your 401(k)?
- After receiving a raise or promotion
- Following a bonus or equity payout
- Anytime you adjust your contribution percentage
- At the start of a new year or benefit cycle
These are ideal times to run the numbers and fine-tune your savings strategy.
If you’re not sure how this applies to your situation—or whether you’re leaving money on the table—let’s connect. As a CFP® who works closely with Merck professionals, I help clients make the most of their employee benefits while keeping their broader financial planning goals in focus.
Apollon Financial LLC (“Apollon”) is an investment advisor registered with the SEC. The information provided is for informational and/or educational purposes only and is not, in any way, to be considered investment advice nor a recommendation of any investment product or service. Matching practices vary by employer; please refer to your official plan documents for details.
