How matches work
Many US employers add money to your 401(k) when you contribute. A common formula is "50% of your contributions up to 6% of pay": contribute 6% and your employer adds 3%. Others match 100% up to 3% or 4%. On a $70,000 salary, a 50%-up-to-6% match is worth $2,100 a year, but only if you contribute the full 6%. Contribute 4% and you receive $1,400.
That missing $700 a year may not sound like much, but at 7% over 30 years it grows to roughly $70,000. Because the match is an instant 50% or 100% return on the money you put in, capturing all of it is usually the first priority in retirement saving, ahead of paying off low-interest debt.
Vesting and limits
Employer contributions may vest over time, meaning you must stay a certain number of years to keep all of the match. Check your plan documents. For 2026, the IRS limit on employee 401(k) deferrals is $24,500, with extra catch-up contributions allowed from age 50. Employer match does not count toward your own deferral limit.
Common questions
What is a typical 401(k) match?
Common formulas are 50% up to 6% of pay, or 100% up to 3% to 4%.
Should I always contribute enough to get the match?
For most people, yes. It is an immediate 50% to 100% return on that money.
What is the 401(k) contribution limit for 2026?
$24,500 for employee deferrals, plus catch-up contributions for those 50 and older.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.