What is a typical 401(k) match?

50% up to 6% of salary is common. Some employers offer 100% up to 4% or more.

When does employer match vest?

Match may vest over 2-6 years. Check your plan for the vesting schedule.

Should I max match before Roth IRA?

Yes. Match is free money — prioritize it before other investing.

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RETIREMENTRetirementFinance Calculator

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Maximize 401(k) Match — Free Money

Find how much to contribute to get the full employer match. Match is 50-100% instant return — don't leave it on the table.

Maximize Match

Why This Matters for Your Finances

Why: Employer match is free money — 50% match = 50% instant return. Always contribute at least to the match cap.

How: Optimal = Salary × Match Cap %. Match = Salary × min(Your %, Cap %) × Match Rate.

Sources:IRS — 401(k) Plans

Sample Scenarios

Match Details

Annual SalaryGross salary

Match PercentageEmployer matches

Match CapMax % matched

Current ContributionYou contribute

Pay Frequency26=bi-weekly

/yr

⚠️For educational and informational purposes only. Verify with a qualified professional.

💡 Money Facts

50%

Typical match rate

— Common

Typical cap

— Common

100%

Dollar-for-dollar

— Generous

Free

Match = free $

— Employer

1. Key Takeaways

• Free money: Match is 50-100% instant return
• First priority: Always get full match before other investing
• Use it or lose it: Most matches don't carry over
• Contribute at least to the match cap — it's the best return you'll get

2. Did You Know?

Typical Match

50% up to 6% of salary is common

True-Up

Some plans catch up at year end

Vesting

Match may vest over 2-6 years

Instant Return

50% match = 50% instant return

After Match

Consider Roth IRA or more 401(k)

Per Paycheck

Spread contribution across all pays

3. How It Works

Optimal = Salary × Match Cap %. Match = Salary × min(Your %, Cap %) × Match Rate. Example: 50% up to 6%, $80K salary → Contribute $4,800 (6%) to get $2,400 match.

4. Expert Tips

Always max match first

Before Roth IRA, taxable investing

Check true-up

Some plans true-up if you front-load

Vesting schedule

Know when match is yours

Per paycheck math

Divide by 26 for bi-weekly

5. Comparison Table

Salary	50% up to 6%	100% up to 4%
$60K	$1,800 match	$2,400 match
$80K	$2,400 match	$3,200 match
$100K	$3,000 match	$4,000 match

6. FAQ

What if I can't afford the full match?

Contribute as much as possible. Even partial match is free money.

Does match count toward $23K limit?

No. Your $23K + employer match = total. Match is extra.

What is true-up?

Some plans add match at year-end if you maxed early. Check your plan.

7. Sources

• IRS — 401(k) Plans
• DOL — Employer Match Rules

8. Quick Stats

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