Employer match

An employer match is money your employer pays into your workplace retirement plan, such as a 401(k), based on what you contribute from your own pay. The formula is written in the plan documents. A plan might add 50 cents for every dollar you contribute, up to 6 percent of your pay: if you earn $50,000 and contribute 6 percent ($3,000), the employer adds $1,500.

Not every employer offers a plan, and not every plan offers a match. Employer money can come with vesting, meaning you may have to work a certain length of time before all of it is yours to keep. Match dollars do not count against the yearly limit on your own contributions (in a 401(k), $24,500 for 2026), though a separate, higher limit caps the total. The money is invested, so it can lose value.