What is a 401(k) match true-up, and why does it matter?

A true-up is an extra employer payment that fixes a shortfall caused by front-loading your contributions. Most plans match per paycheck, so if you max out your $23,500 early in the year, you stop contributing in later months — and in those months there's nothing to match, costing you part of the annual match. A true-up recalculates the match on an annual basis and pays you the difference after year-end, so aggressive savers don't lose money. The problem: not every plan offers one. If yours doesn't, spread your contributions evenly across all pay periods so you contribute something every paycheck and capture the full match. Check your Summary Plan Description for the word 'true-up.' If it's absent, adjust your contribution percentage so you finish the year exactly at the limit, not before it.