What is a 401k match, and am I leaving money on the table?
If your employer matches contributions, this is the closest thing to free money adulthood offers.
Time
15 minutes to check and adjust
Cost
Costs you contributions, but it's literally matched
DIY?
Fully DIY
Urgency
Fix this on your next paycheck
What's probably happening
A 401k match means your employer deposits extra money into your retirement account based on how much you contribute, usually up to a percentage of your salary. If you contribute less than the match threshold, you're skipping part of your own compensation.
How urgent is it
Every pay period you under-contribute is match money you don't get back later. It's not retroactive.
What to do first
Find your plan's match formula, often phrased like '100% match on the first 3% of pay.' Your HR portal or benefits summary has this.
Can I handle this myself
Set your contribution percentage to at least the full match threshold. If you genuinely cannot afford that right now, contribute whatever you can and raise it by 1% each time you get a raise, you likely won't notice the difference in your paycheck.
When to call a professional
If you're choosing between paying off high-interest debt and contributing, a quick conversation with a fee-only financial advisor (not one selling you products) can help you weigh it, though getting the full match is almost always worth doing first.
What it might cost
Your contribution comes out of each paycheck pre-tax (or post-tax for a Roth 401k), and the match is added on top at no cost to you beyond contributing enough to trigger it.
What to gather first
Your benefits summary or plan document, which states the exact match formula and vesting schedule.
Mistakes to avoid
Not checking the vesting schedule (how long you must stay employed to keep the matched funds) and assuming all employers match the same way.
General educational information, not individualized tax, legal, or financial advice for your situation.
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