If your employer offers a 401(k) match, it's the closest thing to free money you'll ever get. Yet millions of workers leave part of it unclaimed. Learn how matches work and why you should always contribute enough to get the full match.
An employer match is when your company contributes additional money to your 401(k) based on how much you contribute. Common formulas include "50% of your contributions up to 6% of your salary" or "dollar‑for‑dollar up to 3%." Not taking full advantage is like refusing a raise.
Typical match: 50% of your contributions up to 6% of your salary means if you earn $60,000 and contribute 6% ($3,600), your employer adds $1,800 – an instant 50% return.
Your contributions are always yours. Employer matches may vest over time – meaning you need to stay a certain number of years to fully own that money.
No investment guarantees a 50% or 100% immediate return. Getting the full match should be your #1 priority before any other investment.
Studies show about 25% of employees don't contribute enough to get the full match. That's billions in free money forfeited every year.
Enter your salary, your employer's match formula, and your current contribution to see the missed match and its future value.
Adjust the values and click the button.
Even if you can't afford to contribute the full amount now, increase your contribution by 1% each year – you'll barely notice, but your future self will thank you.