401k Match Calculator

An employer match is when your company contributes money to your 401k based on your own contributions. For example, a 50% match up to 6% of salary means if you contribute 6% ($6,000 on $100k salary), your employer adds $3,000 (50% of $6,000). This is essentially free money and immediate 50% return on investment.

At minimum, contribute enough to get the full employer match. If your employer matches 50% up to 6% of salary, contribute at least 6%. Anything less means you are leaving free money on the table. For 2024, the IRS limit is $23,000 ($30,500 if age 50+), so you can contribute more if financially able.

This common formula means: (1) The employer will match 50 cents for every dollar you contribute, BUT (2) Only on contributions up to 6% of your salary. So if you earn $100k and contribute 10% ($10k), the employer only matches the first 6% ($6k), giving you $3k (50% of $6k). The remaining 4% you contributed gets no match.

It depends on your company vesting schedule. Some employers give immediate 100% vesting (you own the match right away). Others use graded vesting (e.g., 20% per year over 5 years) or cliff vesting (e.g., 100% after 3 years). Your contributions are always 100% vested immediately.

No, not immediately. Both your contributions (pre-tax) and employer match grow tax-deferred. You pay ordinary income tax when you withdraw in retirement. If you have a Roth 401k option, your contributions are after-tax but withdrawals are tax-free; employer match still goes into traditional 401k.

You should still consider it! Contributing beyond the match (up to IRS limit of $23,000 in 2024) provides tax-deferred growth and reduces current taxable income. Many financial advisors recommend saving 15% of income for retirement. The match is just the minimum to capture free money.

Yes, most employers allow you to adjust your 401k contribution percentage at any time through your benefits portal or HR department. Changes typically take effect in the next pay period or within 1-2 pay cycles.

Conservative: 5-6%, Moderate: 7-8%, Aggressive: 9-10%. Historical S&P 500 average is about 10% annually, but past performance does not guarantee future results. Most financial planners use 6-7% for long-term conservative planning. Your actual return depends on your investment allocation and market conditions.

You have several options: (1) Leave it with former employer (if balance is $5k+), (2) Roll it over to new employer 401k, (3) Roll it into an IRA, or (4) Cash out (not recommended - triggers taxes and 10% early withdrawal penalty if under 59.5). Only the vested portion of employer match goes with you.

General rule: (1) Always contribute enough to get full employer match (it is free money, immediate 50-100% return), (2) Pay off high-interest debt (credit cards 15%+), (3) Build emergency fund (3-6 months expenses), (4) Then maximize 401k and other investments. The employer match is essentially a guaranteed return you should never pass up.