Examine your statement more closely. The rate of return could be the year-to-date return, or the total return over the entire time you've had the account. Return is related to the growth in value (e.g. capital appreciation plus dividends paid, etc.) of the principal that you and your employer (matching contributions, profit sharing, etc.) have contributed in the account. Returns are subject to variations in the market. Contributing more to your account won't necessarily increase your return, except where compounding is concerned (you'll increase the $ you have, not the actual % return). For example, if you contribute $200 a month for a year and get, say, an 8% return compounded monthly, at the end of the year, you'll have contributed $200 x 12 = $2400, and your account would be worth $2,489.99, which is an $89.99 increase in value. If you contribute $300 per month instead, you would have contributed $300 x 12 = $3,600, and your account would be worth $3734.99, an increase of $134.99. Past performance (returns) are not necessarily indicative of future performance.

Talk to your human resources department and ask them to refer you to your plan's advisor to help you understand this better. Human resources should also be able to tell you about the $561 additional contribution. It's most likely a profit-sharing contribution that is often made this time of year when companies file their 5500s. Be sure to get someone to explain the vesting system to you, or better yet, ask HR for the Summary Plan Description (SPD) and read it carefully for more details. You were probably already given this. New employees must receive a copy of their plan sponsor’s latest Summary Plan Description within 90 days after becoming covered by the plan.

Your rate of return does not depend on the amount of your contributions. It depends on what investments you choose within the 401(k).

that is per year.

ask your administrator to teach u about

money.

study Financial Peace, Dave Ramsey so

u can keep your money not get burned.

What exactly does that mean? It means you are doing something right, so do not change anything!

I checked my 401K and it says I have a rate of return of 18.29%. What exactly does that mean? If I contribute more per pay check does that mean I would get more from the rate of return? For example one month in contributed $200 and I show a contribution of an additional $561 dollars