401K match - How to get the most out of it

Warning - don't front load your 401K early in the year!

It turns out that it makes a difference what percent you contribute to your 401K plan.
The Kaiser match isn't based on a percent of your contributions, it's based on a percent of your pay. But the contributions stop once you hit the maximum employee contribution (2008 - $15,500 if under 50, $20,500 if 50+  FYI: The Kaiser contributions are on top of the limit for employee contributions!).
So if you contribute more than the minimum then you reach the max before the end of the year (front load) and the match contributions stop. This has been confirmed with Kaiser.

If it seems confusing to you, it was to me too. So I made up a table to demonstrate. (table is based on full time, <15 years, <50 year old)

Notice, you get the same match each pay period whether you contribute 13% or 30% because it's based on what you make, not what you contribute.

If you have 30% contributed, versus the minimum of 13%, you will lose out on $868 of Kaiser match over the year.

The contribution table (below) is broken down by your weekly hours, whether you've reached the longevity step, and if you're 50+.
The percentage listed in the table is the amount of the minimum percentage contribution to your 401K to reach the employee contribution maximum. Contributions may only be made in whole percentages.
Any less and you won't be fully contributed, any more and you will miss out on some of the maximum match.

You can reconfigure your payroll deduction contribution percent on the Vanguard site. It can be done any time. Changes take a at least two payperiods to take effect. 
Be sure to review your eligible compensation when calculating. Your eligible compensation includes regular pay, overtime, and shift differentials. Excluded from your ‘eligible compensation’ are bonuses, special allowances, and payments from a benefit plan, such as Flex Credits, Workers’ Compensation, State Disability (SDI), or an Alternate Compensation Program (ACP).

Remember that it's more important in the long run to make the maximum pre-tax employee contribution than to get every last penny of the match. 
Most people will have to make contribution adjustments early in the year and again in early November to try to maximize both.

These are generic calculations, you shouldn't base your financial affairs on them. You should always work the math yourself or consult a financial professional. 

Howard Hertz
Guild for Professional Pharmacists Vice President