Guide · 401(k)

How 401(k) employer match works

Educational guide · Updated · About 7 min read

An employer match is additional money deposited when you contribute to a 401(k). A common teaching form is “50% of what you put in, up to 6% of pay.”

Sample formula

Match = match rate × the lesser of your annual deferral and (salary × match-up-to %). Real plans may use tiers, true-up, or different definitions.

Sample

$80,000 · 6% deferral · 50% up to 6% → employer about $2,400/yr. Open sample

Related

Frequently asked questions

What is an employer 401(k) match?

Money the employer adds when you defer pay into the plan, often as a percent of your contribution up to a percent of salary.

Sample match on $80,000 with 6% and 50% up to 6%?

About $2,400 per year under Nestfigure’s teaching formula.

Related tool

Estimate match free

Salary, deferral %, match rate and window.

Open 401(k) calculator

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.

YMYL notice: This site is for education only. It is not financial, tax, or investment advice. Nestfigure is not a bank, credit union, broker, investment adviser, or fiduciary. Product terms, rates, and penalties vary—always read your institution’s disclosures before acting. Calculator results are mathematical estimates, not bank quotes.