401(k) Employer Match Optimizer Calculator

401(k) Employer Match

Most employer matches follow a simple percentage formula:

• “100% of the first 3% you contribute”: you put in 3%, employer adds 3% (3% of salary)
• “50% of up to 6%”: you put in 6%, employer adds 3% (50% of 6%)
• “100% of first 4% + 50% of next 2%”: tiered, max match 5%

Common formulas:

The “free money” rule: Always contribute at least enough to capture the full match. Employer match is part of total compensation. Leaving it on the table is equivalent to refusing a raise.

2026 IRS contribution limits:

• Employee 401(k): $23,500 ($31,000 if age 50+)
• Total (employee + employer + after-tax): $70,000 ($77,500 if age 50+)
• IRA: $7,000 ($8,000 if 50+)

Match formula math examples:

Example 1: Salary $80,000, formula 50% of 6%, contribute 6%

• Your contribution: $80,000 × 6% = $4,800
• Match: $4,800 × 50% = $2,400 (or 3% of salary)
• Total: $7,200

Example 2: Same salary, contribute 4% (under match cap)

• Your: $3,200
• Match: $3,200 × 50% = $1,600
• Total: $4,800
• You missed $800/year of free money ($2,400 - $1,600)

Example 3: Salary $80,000, contribute 15% (over match cap)

• Your: $12,000
• Match: still capped at $2,400 (50% of 6%)
• Total: $14,400: extra contribution is your money, not matched

True-up provisions: Some plans match per-paycheck (you must spread contribution across the year), others have a year-end “true-up” (back-fill match if you front-loaded contributions).

Without true-up: if you max out by July, you stop getting matches Aug-Dec, losing 5+ months of match. With true-up: front-loading is safe, the company catches up at year-end.

Always check your plan documents for true-up clauses. Without a true-up, contribute steadily through the year, not lump-sum.

Vesting schedules:

If you leave before fully vested, you forfeit the unvested portion of match. Bonus consideration when accepting a new job.

Mega backdoor Roth (advanced): If your plan allows after-tax contributions and in-service withdrawals, you can get up to $70,000 total into a 401(k), then convert the after-tax portion to a Roth. Few plans offer this — check your Summary Plan Description.