401(k) Calculator: Is Your Match Doing Enough?

Nina contributed 3% to her 401(k) for two years before a coworker mentioned, almost in passing, that the company matched up to 6% — she’d been leaving roughly $1,800 a year unclaimed without ever knowing it was there. An employer match is the closest thing to free money most people will ever be offered, and a surprising number leave part of it on the table simply by not contributing enough to capture the full match. This calculator exists mainly to make that gap visible.

What it actually projects

Salary, your own contribution rate, and your employer’s match formula combine into a projected balance at retirement — separating out how much of the final number came from you versus from the match versus from growth.

An $80,000 salary contributing 6% with a typical employer match can project to roughly $612,000 by retirement — and a meaningful chunk of that is match money that simply wouldn’t exist if the contribution rate had been set below the match threshold.

The most common way people underuse this

Contributing less than the amount needed to capture the full match is effectively refusing part of your own compensation. Even before considering your own savings goals, contributing at least up to the match threshold should usually come first, before extra debt payoff or other saving.

Traditional vs Roth 401(k) contributions

Traditional contributions reduce your taxable income now and get taxed on withdrawal; Roth contributions are taxed now and grow tax-free. Which wins depends on whether you expect your tax rate to be higher or lower in retirement than it is today — a genuinely uncertain bet, which is why some people split contributions between both.

Vesting — the catch on employer money

Your own contributions are always yours immediately. Employer match money often “vests” on a schedule — leaving before it fully vests can mean forfeiting part of the match you thought you’d already earned. Worth checking your plan’s specific schedule before assuming every matched dollar is locked in.

What if my employer doesn’t match at all?

The tax-advantaged growth is still valuable on its own, but without a match, comparing the 401(k)’s available fund choices and fees against a Roth or traditional IRA is worth doing before deciding where extra savings should go.

Can I contribute too much to a 401(k)?

There’s an annual contribution limit set each year — exceeding it (across multiple employers in the same year, for example) can trigger tax complications, so it’s worth tracking if you’ve changed jobs mid-year.

---

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.