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Chapter 7. Keeping Tabs on Your Account > Some Not So Interesting Reading - Pg. 75

Keeping Tabs on Your Account 75 Pay Stubs Check these to make sure that the plan administrator is properly taking deductions from your pay- check. For example, you should be able to take your contribution rate and multiply it by your pay to calculate the dollar amount that you contributed for the pay period. Then you should check your account reconciliation statements to make sure that the plan administrator properly credited these contributions to your account. Warning! Don't miss the match. Remember that when your contributions end, so does the company match. You can inadvertently miss the match by contributing too much. Here's how: In 2002 you make $80,000/year, elect to contribute 20 percent of pay or $11,000, and your employer matches you each paycheck. By August, your contributions will have reached $11,000 and they will stop ($80,000 ÷ 12 = $6,667/month x 20 percent = $1,333). The result--you'll miss the match for September through December. The solution, spread your con- tributions evenly throughout the year by contributing 13.8 percent ($11,000 ÷ $80,000 = 13.8 percent). When you check your contributions, make sure you understand the compensation that is covered by the plan. It is possible that the plan deducts contributions from base pay only, and not from overtime or bonuses.