Making the most of your match
Let’s break down how an employer match works and how to maximize contributions to your retirement plan.
How do I maximize my employer match?
To receive your full match, you must set the minimum contribution to your plan to reach your employer’s maximum matching contribution.
Let’s calculate what a match might look like assuming you have an annual salary of $50,000…*
|Employer Match Type||Example||Your Annual Contribution||Your Employer's Annual Contribution||Total Annual Contribution|
|Single-tier formula||$0.50 per dollar on the first 6% of pay||$3,000||$1,500||$4,500|
|Multi-tier formula||$1.00 per dollar on the first 3% of pay; $0.50 per dollar on the next 2% of pay||$2,500||$2,000||$4,500|
Put your match to work
See if you need to update your contributions—or if you’re contributing enough to meet your match (if offered).
Article ByClaudia Newman
Claudia Newman manages the Retirement Education team that helps onboard employees to their Human Interest plan and explains the benefits of a 401(k) plan by offering live training. She has been working in the 401(k) and retirement plan industry in several capacities, including relationship management, sales, and back-office support since 2010.