DayCents

401(k) Employer Match

An employer match is money your company adds to your 401(k) based on what you contribute — commonly 50% of your contributions up to 6% of your salary. It's an immediate, guaranteed return on your savings, which is why the near-universal advice is to contribute at least enough to capture the full match.

A 50%-up-to-6% match on a $100,000 salary adds $3,000 a year if you contribute 6%. Skipping it leaves free money on the table. Matched dollars may vest over time, so check your plan's schedule before counting on the full amount if you might change jobs.