401K Calculator Guide · Employer match
How 401K Employer Matching Works
The calculator models one required match band and an optional second band from the percentages you enter. It does not infer your employer's plan terms.
First match band
tier 1 share = min(employee rate, first match band)
tier 1 employer rate = tier 1 share × employer match rate
Example: an 8% employee contribution with a 50% match through 6% of salary models an employer contribution equal to 3% of salary.
Optional second tier
second-tier share = min(max(employee rate − first match band, 0), second-tier band)
The second match rate applies only to that next band. With a 100% match on the first 3% and 50% on the next 2%, the full configured match threshold is 5% of salary.
Full-match metrics
The calculator shows the employee rate needed to traverse configured nonzero bands, the maximum configured first-year employer match at the starting salary, and any first-year modeled match left unclaimed at the active contribution rate.
Plan terms control reality
Matching eligibility, timing, vesting, true-up rules, compensation definitions, and contribution limits can differ by employer and law. Enter the match formula you intend to model and verify consequential decisions against current plan documents.