How to make up for a lost 401k match at a new job
Losing an employer 401(k) match leaves a major gap in retirement savings, often causing confusion about how much extra percentage to contribute or whether to use a taxable brokerage account. Without guidance, savers struggle to balance higher contribution targets with fears of complex tax implications.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
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How to make up for a lost 401k match at a new job
- 1Redirecting a portion of a salary increase into the 401kDid this help you?
- 2Following standard personal finance wiki directives to prioritize HSA and Roth IRA before returning to the 401kDid this help you?
- 3Maxing out tax-advantaged 401k contributions instead of putting money into a taxable brokerageDid this help you?
- 4Investing in a regular taxable brokerage accountDid this help you?
- 5Maxing out an individual Roth IRADid this help you?
- 6Redirecting extra mortgage payments toward retirement accountsDid this help you?
- 7opening a separate Roth IRADid this help you?
- 8leaving the old 401k where it isDid this help you?
- 9rolling over an old 401k into a rollover IRADid this help you?
- 10Reviewing the Summary Plan DescriptionDid this help you?
- 11Encouraging junior employees to contribute more to help the plan pass nondiscrimination testingDid this help you?
- 12Switching to automatic default employee contributionsDid this help you?
- 13Maxing out standard 401(k) contributions despite the lack of an immediate employer matchDid this help you?
- 14Executing a reverse rollover from a traditional IRA into a current employer's 401(k) to clear out pre-tax balances and enable backdoor Roth IRA contributionsDid this help you?
- 15Setting up backdoor Roth IRA contributions for an unemployed or stay-at-home spouseDid this help you?
- 16Investing excess savings into standard taxable brokerage accounts utilizing tax-efficient ETFs and tax-loss harvestingDid this help you?
- 17Maxing out traditional or Roth IRAsDid this help you?
- 18Opening a regular brokerage accountDid this help you?
- 19Following the three-fund portfolio strategy from bogleheadsDid this help you?
- 20Consulting a financial planner for a moderate investment mixDid this help you?
- 21Staying at the company until the end of the year to secure the contribution before resigningDid this help you?
- 22Accepting the reduction in benefitsDid this help you?
- 23Opening and funding a taxable brokerage accountDid this help you?
- 24Utilizing a Health Savings Account (HSA) if eligible through health insuranceDid this help you?
- 25Draining a taxable brokerage account next year to pay living expenses while sending entire paychecks to the 401kDid this help you?
- 26Finding a different employer without a waiting periodDid this help you?
- 27Waiting for further company communicationDid this help you?
- 28Asking the employer directly about the status of the matchDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“Meaning if they lay you off on Dec 30, you don’t get their match because the last day of the year is Dec 31.”source ↗
““To receive the Company match for a year, you must be an active employee of the Company on the last business day of that year and the Company match contribution will be deposited into your account during the first quarter of the following year….. If your employment is terminated for any other reason (voluntary or involuntary), including a reduction in force during the year, you will not be eligible to receive the annual 401(k) Company match for the year in which your employment terminates.””source ↗
“However, I know with the loss of match that I need to make up that gap.”source ↗
“What do you recommend? Should I put in 12%?”source ↗
“they just stopped as apparently there is a cap at $4,000 to their contribution when I was expecting $8,400 for the year.”source ↗
“There was no mention of a cap in my offer letter and I never read anything about it in the handbook.”source ↗
“In my early 40s and new employer does not offer 401K. How should I continue retirement savings?”source ↗
“Should I rollover my entire Fidelity portfolio (less than $150K) into another type of account? Keep the current set up and open a new/separate Roth IRA?”source ↗
“I want to keep contributing to my retirement but not sure where to invest.”source ↗
“Where should I be putting my weekly investments?”source ↗
“What is the smart moves to personal investing for a person with no sense of what to do?”source ↗
“I’ve never heard of this before and I’ve been at several companies. But this is the first time I’m able to contribute at this level with this kind of salary. It’s really disappointing.”source ↗
“I got caught by that one year, even though my salary was not that high.”source ↗
“Traditional/Rollover IRA I self managed with Fidelity 😕”source ↗
“I (31f) am a little stumped on what to do for retirement. I’ve only been i the US working for 4 years - my work doesn’t have a 401k plan unfortunately (very small company) and changing jobs is not an option rn.”source ↗
“Should I be investing in a brokerage? I am terrified of the tax implications.”source ↗
“My company doesn't offer a 401k match until you have a bit of tenure, and I make too much to be eligible to contribute anything to my Roth IRA.”source ↗
“Additionally, I rolled over my 401k from a prior employer years ago which, to my understanding, makes me ineligible for a backdoor.”source ↗
“I found out that the 401k benefits aren't available until after 12 months of employment, which seems like an insanely long time to me.”source ↗
“I want to keep the momentum going, but I'm not sure what to do now that my employer won't offer a 401k until I've been there for a year.”source ↗
“What are my best options for retirement saving here (besides continuing to max my Roth IRA)? Should I finally open a taxable account and invest there for now, or do I have other options?”source ↗
“Does anyone work for one of these employers where the match has actually taken place? Is it a delay in the government giving these companies an option to even make said contribution?”source ↗
Where this came up
People with this problem also raised
- 3Employer messed up my 401k start date and lost match
- 2Is a 401k match worth it for a summer internship?
- 5Why can't I withdraw my 401k after leaving a job?
- 12How do I roll over a 401k after a layoff?
- 6Boss hasn't paid me in months
- 4How to handle 401(k) contributions and employer matches when changing jobs