401(k) contribution percent explained

Your contribution percent sets how much of salary you defer. Under many match formulas, deferring below the match window means less employer money.

Sample on $60,000 · 50% match up to 6%

• 3% deferral → you $1,800, employer $900, missed about $900
• 6% deferral → you $3,600, employer $1,800, missed about $0

Open sample

Related

• How employer match works
• How we calculate

Frequently asked questions

What does contribution percent mean?

The share of salary you elect to defer into the 401(k) each year in this teaching model.

Why does 6% capture more match than 3% in a 50% up to 6% plan?

At 3% you only fill half the match window, so the employer matches less. At 6% you fill the full window under the sample formula.

Sources linked above include U.S. government materials (for example CFPB, FDIC, NCUA, BLS, IRS) where noted. Sample math uses only labeled Nestfigure assumptions—not bank quotes, job offers, or personalized advice. Last reviewed: August 9, 2026.