Investment Simulator How much should you contribute to your 401(k) to get the full match?
See how a 50% match up to 6% of pay works and how to include your employer's contribution in a retirement projection.
If your employer matches 50% of what you contribute up to 6% of eligible pay, contributing 6% gets the full match under that formula. Your employer puts in another 3% of eligible pay, bringing the total to 9%.
That wording trips people up. One r/personalfinance thread asked how to read almost exactly that offer. Another asked whether maxing out early could cost them part of the match. The two questions come down to how much of your pay the formula covers and when the plan applies it. Discussion about the 6% match · Discussion about contributing early
What does the match add to each paycheck?
Suppose you earn $100,000 in eligible pay per year and get paid twice a month. Here are the approximate amounts per paycheck under that formula.
| Your contribution rate | You contribute | Employer contributes | Total deposited |
|---|---|---|---|
| 3% | $125.00 | $62.50 | $187.50 |
| 6% | $250.00 | $125.00 | $375.00 |
| 10% | $416.67 | $125.00 | $541.67 |
At 6%, that’s $6,000 from you and $3,000 from your employer over a full year. At 10%, you save more of your own money while the employer contribution stays at $3,000. Check your plan’s documents for the match formula, which pay qualifies, and when employer contributions vest. IRS guide to matching contributions
Could contributing early cost you part of the match?
If your employer calculates the match each paycheck and your contributions stop partway through the year, you could miss the match on later checks. Some plans make an extra adjustment based on your annual contributions, often called a true-up. Ask the plan administrator whether yours has one and what conditions apply before changing your contribution schedule.
How much difference could the match make over time?
Using the 6% example, the monthly equivalent is $500 from you and $250 from your employer. With a $0 starting balance and a constant 6% annual return over 30 years, $500 per month grows to about $489,628, while $750 grows to about $734,442. At 2.5% annual inflation, that’s roughly $233,427 versus $350,140 in today’s dollars. This projection uses deposits at the start of each month and leaves taxes and fees out. Your actual 401(k) deposits follow your pay schedule.
Open the $750 monthly scenario in Investment Simulator. To see how that balance fits your retirement budget, use the guide to retiring on $5,000 a month.