Open enrollment guide · Updated Oct 27, 2026

401(k) Match: How Much to Contribute and What It Does to Your Paycheck

Read the formula

• "100% of the first 4%": contribute 4%, get 4%.
• "50% of the first 6%": contribute 6%, get 3%.
• "100% of the first 3% + 50% of the next 2%": contribute 5%, get 4%.

What it really costs

A traditional 401(k) contribution lowers your federal (and usually state) income tax. On $60,000, raising your contribution 1% puts $600 more in your account but cuts take-home by only about $468 in the 22% bracket. Social Security and Medicare still apply.

Watch for

• Vesting: employer money may take years to fully belong to you.
• Per-paycheck match without a true-up: front-loading can miss match dollars late in the year.
• Saver's Match: starting with 2027 contributions, lower-income savers can get a federal match of up to $1,000.

FAQ