An employer match is part of your pay. Contributing less than the amount needed to get the full match leaves that part on the table. November is a good time to check, because most plans let you change your contribution rate for the remaining paychecks.
1. Read the match formula
Common formulas look like "100% of the first 3% plus 50% of the next 2%" or "50% of the first 6%". Your plan documents or HR portal list the exact rule.
2. Find the minimum contribution for the full match
In the first example, contributing 5% of pay gets the full 4% match. In the second, it takes 6% to get 3%.
3. Watch out for front-loading
If you hit the annual contribution limit early and your plan calculates the match each pay period without a "true-up", you can miss match dollars later in the year. Ask whether your plan does a true-up.
4. Check the vesting schedule
Matched money may vest over several years. If you're planning a job change, the vesting date can be worth knowing.
5. Then decide what's next
After the full match, people usually weigh paying off high-interest debt, building an emergency fund, and further retirement saving (Roth vs traditional depends on your tax situation).
Free tools
- 401(k) match calculator
- Roth vs traditional calculator
- 401(k) contribution tracker spreadsheet (free CSV)
- Net Worth Tracker
General information, not financial or tax advice. Plan rules vary.