GLOSSARY · TAX & ESTATE

Employer match

Money an employer adds to your workplace retirement plan when you contribute, set by a formula with a match rate and a cap as a share of pay. You receive it only if you contribute at least up to the cap, and it may vest over a period of service before it is fully yours.

Also called: 401(k) match, matching contribution, company match

FORMULA

Match = match rate × the smaller of (your contribution rate, the cap) × salary

COMPUTE IT WITH YOUR NUMBERS

401(k) contribution and match calculator →How much can I put in my 401(k) in 2026, and am I getting the full employer match?

LEARN IT PROPERLY

CHAPTER · ARRIVING AND WORKING ON A VISA · FOUNDATIONS401(k), IRA and HSA When You Might Leave CHAPTER · INCOME FUNDAMENTALS · FOUNDATIONSReading Your Paycheck, From Gross to Net

SOURCES

401(k) plans. Internal Revenue Service.

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