GlossaryAccounts
Financial term

Employer Match

Money your employer adds to your 401(k) based on your own contributions — effectively free money.

An employer match is a contribution your employer makes to your 401(k) tied to what you put in — commonly something like 50% or 100% of your contributions up to a percentage of your salary. Capturing the full match is widely considered the highest-priority move in personal finance because it's an immediate, guaranteed return on your money.

Leaving match on the table is leaving compensation unclaimed. The one wrinkle is the vesting schedule: some matches aren't fully yours until you've worked a certain number of years, so the match you've earned on paper may not all be portable if you leave early.

Put this to work
See how Employer Match plays out with your own numbers.

This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.

More in Accounts
401(k)IRA (Individual Retirement Account)Roth IRATraditional IRAHSA (Health Savings Account)529 Plan
← Back to the full glossary