Common 401(k) Match Formulas
The second row is the IRS "basic" safe harbor formula: plans that use it (or 100% of the first 4%, the most common "enhanced" version) skip some nondiscrimination testing and generally must vest the match immediately (a qualified automatic contribution arrangement, or QACA, may use a 2-year cliff instead). Your summary plan description states your formula; it is often written as "$0.50 on the dollar up to 6%".
Front-Loading Can Cost You Match
Most plans calculate the match each pay period. If you contribute a high percentage and reach the 2026 limit of $24,500 ($32,500 at 50 or older, $35,750 at ages 60-63) before December, your contributions stop, and so does the match, unless the plan "trues up" after year-end by paying the match you would have earned on your total contributions. Ask HR whether yours does. If not, set a percentage that reaches the limit on your last paycheck; the calculator works out that rate.
Vesting: When the Match Is Yours
Your own contributions are always 100% yours. Employer matches can vest over time, and the law caps how slowly: a 3-year cliff (nothing until 3 years of service, then everything) or a 6-year graded schedule (20% after 2 years, rising 20 points a year to 100% after 6). Traditional safe harbor matches vest immediately. Leaving before you are vested forfeits the unvested part, so the calculator shows how much of this year's match would go with you.
Frequently Asked Questions
What is a good 401(k) match?
Matches worth 3% to 6% of pay are common. 50% of the first 6% (worth 3% of pay) is the most common formula; a dollar-for-dollar match on the first 6% (6% of pay) is generous.
How much should I contribute to get the full match?
The top of the formula: 6% for "50% of the first 6%", 5% for the safe harbor 100%/50% formula, 4% for "100% of the first 4%". Contributing less leaves free money unclaimed.
Does the employer match count toward the $24,500 limit?
No. The $24,500 limit for 2026 covers only your own contributions. Employer contributions count toward the separate total limit of $72,000 (plus catch-up).
What is a 401(k) true-up?
A year-end payment some employers make when the per-paycheck match came up short, usually because you hit the contribution limit early. Not every plan has one; your summary plan description will say.
Do I lose my match if I leave my job?
You keep the vested part. Under a 3-year cliff you keep nothing before 3 years of service; under the 6-year graded schedule you keep 20% per year of service from year 2.
How to Use This Calculator
- Enter salary and contribution rate — the percentage taken from each paycheck.
- Pick your match formula — or enter a custom rate and cap from your plan document.
- Add pay frequency, age and true-up — these decide whether you hit the limit early and lose match.
- Set vesting — to see how much of the match you would keep if you left.
📚 Sources & References- [1] IRS. "401(k) limit increases to $24,500 for 2026" (IR-2025-111; Notice 2025-67). www.irs.gov
- [2] IRS. 401(k) Plan Fix-It Guide and safe harbor plan rules (basic and enhanced matching formulas). www.irs.gov
- [3] IRS. Retirement Topics: Vesting (3-year cliff and 6-year graded schedules for employer matches). www.irs.gov
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