401(k) Match You Are Leaving on the Table
Example: Annual salary: 75000 $ · Your current contribution: 3 % · Employer match rate: 50 % · Match applies up to (% of salary): 6 % · Years until retirement: 25 · Expected annual return: 7 %
| Match forfeited — compounded to retirement | $71,155 |
| Annual match forfeited | $1,125 |
| Maximum match available | $2,250 |
| Match you are receiving now | $1,125 |
Worked example
On a $75,000 salary with a 50% match up to 6%, the maximum annual match is $2,250. Contributing only 3% captures $1,125 — forfeiting $1,125 per year. Compounded at 7% over 25 years, that forfeited match grows to approximately $75,337 of retirement wealth surrendered for free.
Frequently asked questions
What is a typical 401(k) employer match?
The most common match structure is 50% of your contribution up to 6% of salary, but matches vary widely — some employers offer a dollar-for-dollar match, others match up to 3%. Check your plan documents or HR for your exact formula.
Is there a vesting schedule on employer match?
Many employers use a graded vesting schedule (e.g., 20% per year over 5 years) or a cliff (e.g., 0% until year 3 then 100%). If you leave before vesting, you forfeit unvested match dollars. This calculator assumes full vesting — adjust your personal plan accordingly.
Does the 2025 IRS contribution limit affect match capture?
The 2025 IRS elective deferral limit is $23,500 (plus $7,500 catch-up for age 50+, or $11,250 for ages 60–63 under SECURE 2.0). As long as your contribution stays below this limit, raising it to capture the full match has no IRS barrier.
Should capturing the match take priority over other savings?
In most cases, yes — an unmatched 401(k) contribution earns a guaranteed 50% or 100% instant return before any market returns. Financial planning guidance consistently ranks capturing the full match above paying non-high-interest debt and before funding a taxable brokerage account.