Wealth with Intention
Money Wisdom for Your Next Chapter
Are You Getting Your Full 401(k) Match? How to Check in 15 Minutes
The short version: your employer match is the highest-return money in your financial life, and three fairly ordinary mistakes cause people to miss part of it. You can check all three yourself in about fifteen minutes using your Summary Plan Description and your most recent pay stub.
Most people assume that if they are contributing to their 401(k), the match takes care of itself. Usually it does. But "usually" is doing a lot of work in that sentence, and the exceptions are expensive.
What is a 401(k) employer match?
An employer match is money your company adds to your 401(k) based on what you contribute. It is compensation you have already earned. You just have to meet the plan's conditions to receive it.
Two formulas cover most plans:
- 100% of the first 3%, then 50% of the next 2%. You contribute 5% of pay, your employer adds 4%.
- 50% of the first 6%. You contribute 6% of pay, your employer adds 3%.
Your exact formula lives in your Summary Plan Description, the document your p...
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Leah Hadley, AFCĀ®, CDFAĀ®, MAFFĀ®
Founder/Senior Wealth Manager
Leah Hadley is the founder of Intentional Wealth Partners and Intentional Divorce Solutions, sister companies based in Cleveland and serving clients nationwide. Intentional Wealth Partners provides financial planning and wealth management. She specializes in helping women and couples navigate major life transitions with confidence and clarity. She is also the author of Intentional Money: The Modern Woman's Guide to Building Wealth, Purpose, and Peace, host of the "Intentional Divorce Insights" podcast, and a sought-after speaker.
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