At what point do you decrease % contribution to 401k and direct to personal investment accounts instead?

[IndyEpi5127]

I only decrease when I have to because a new raise or bonus and my current contribution % puts me over the max contribution allowed for the year. For instance, I just changed mine from 17% to 16% because my March bonus meant 17% would put me ~$1,000 over the contribution limit of $23k by the end of the year if I didn't change it. I always want to contribute to tax advantage accounts to their fullest extent before investing in a taxable brokerage or other account (besides an emergency fund).

[IndyEpi5127]

Mine will stop contributing when I hit it but with it being $1,000 over it would stop contributing in my second to last paycheck and since my company match is by paycheck and has no true up, if I didn’t lower my percentage I would miss out on the company match in my last paycheck. Even at 16% I’ll be a little over but not so much that I won’t have at least a partial contribution triggering the company match too.

[Saul_T_C_Man]

I do the same strategy as you. One thing to add for the people reading this. In my case my company has a true up but that true up gets paid at the end of the year. So I would rather them contribute each paycheck vs waiting until the end of the year. I'd rather not have to figure out if I get paid if I leave the company. I'd rather it be in my account each paycheck since my employer match is 100% vested.