Employer Match
Money your employer adds to your retirement account based on what you contribute — effectively free money.
What does employer match mean?
A common formula is 50% of your contribution up to 6% of salary. Contributing at least enough to get the full match is one of the clearest wins in personal finance — declining it leaves guaranteed money on the table.
Put it to use
401(k) Calculator A 401(k) can be one of your best tools for creating a secure retirement. Use this calculator to see why this is a retirement savings plan you cannot afford to pass up. 403(b) Savings Calculator If you are an employee of a non-profit tax-exempt organization, a 403(b) can be one of your best tools for creating a secure retirement.
Employer Match — frequently asked
What is a typical 401(k) employer match?
A common formula is 50% or 100% of your contributions up to 3%–6% of salary — for example, “100% of the first 4%.” On a $60,000 salary that 4% match is $2,400 a year of free money if you contribute enough to earn it.
Is the employer match taxed?
Not when it is contributed. Matching dollars go in pre-tax and grow tax-deferred in a traditional 401(k); you pay ordinary income tax only when you withdraw in retirement. Match funds may be subject to a vesting schedule.