Retirement · Glossary
Employer match
Also called: 401(k) match
Money your employer adds to your 401(k) based on what you contribute, such as 50 cents per dollar on the first 6% of your pay.
A match formula has two parts: the match rate (for example 50% or 100%) and the cap (the share of your salary it applies to). With a 100% match on the first 4%, contributing 4% of a $60,000 salary gets you $2,400 from your employer.
Matching contributions don't count toward your $24,500 personal deferral limit. Contributing at least enough to get the full match is one of the highest-return moves available to most workers. Check your plan's vesting schedule, too.
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Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.