Question 1

How does a 401(k) employer match work?

Accepted Answer

A common match is "50% up to 6%": the employer contributes 50 cents for every dollar you defer, but only on the first 6% of your salary. So if you contribute at least 6%, the employer adds 3% of your salary; if you contribute less, the match shrinks proportionally. Contributing at least enough to get the full match is usually the highest-return move available — it's an immediate, guaranteed return on your money.

Question 2

How much should I contribute to my 401(k)?

Accepted Answer

At minimum, contribute enough to capture the full employer match — leaving it on the table is passing up free money. Beyond that, a common target is 10–15% of salary including the match. Annual IRS contribution limits apply and change yearly, so check the current limit. This is general education, not personalized advice.

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