Playbooks

Capture your 401(k) match

For many workers, the first retirement dollar is the contribution required to earn the full match. Read the formula as “match rate up to a percent of pay,” then contribute at least that percent, subject to the labeled annual deferral limit.

Arc · Published September 18, 2026 · Updated September 18, 2026

Who this is for

Anyone with an employer match who is contributing less than the formula pays on. If you already receive the full match, move to the next playbook.

Why it matters

An unmatched dollar is pay you declined. A 50% match on the first 6% of salary is a 50% bump on that slice, before any investment return.

A common sequence

Find the formula in the plan highlights, not in a coworker’s summary.
Set the deferral at least as high as the cap the match uses.
If cash is tight, raise the deferral in 1% steps on the next two paychecks rather than waiting for a new year.
Check mid-year that a front-loaded contribution did not hit the IRS deferral limit before the match was fully earned. Some plans true-up. Many do not.

Exceptions

A match that vests over years is still usually worth taking if you might stay. If you will leave next month and vesting is zero, the math changes. High-interest debt can share the paycheck, but zero contribution usually still leaves the match on the table.

Worked example

$90,000 salary, 50% match up to 6% of pay. Contributing 6% defers $5,400 and draws a $2,700 match. Contributing 3% draws $1,350 and leaves $1,350 unclaimed. The calculator uses your numbers and the labeled deferral limit.