The 401(k) Match: How Much Free Money You Might Be Leaving Behind
On a $70,000 salary with a 50% match up to 6%, contributing 2% instead of 6% gives up thousands a year and hundreds of thousands by 65.
By the MoneyBackKit team · Updated October 27, 2026 · 4 min read
A common 401(k) match is "50% of what you put in, up to 6% of your pay". If you contribute less than 6%, part of that match is simply never paid. It's the only guaranteed 50% return you'll ever be offered.
$70,000 salary, age 32, match of 50% up to 6%
| You put in 2% | You put in 6% | |
|---|---|---|
| Your contribution this year | $1,400 | $4,200 |
| Employer match this year | $700 | $2,100 |
| Federal income tax saved this year | $308 | $854 |
| Balance at 65 (7% a year, 2% raises) | $321,813 | $965,439 |
Going from 2% to 6% costs you about $2,254 more a year after the tax saving, and brings in $1,400 more from your employer every year. By 65, the difference is about $643,626.
Check these in your plan
- The formula: "100% up to 3%", "50% up to 6%" and "dollar for dollar up to 4%" all need different contribution rates to get the full match.
- Vesting: your own money is always yours, but the match may vest over 2 to 6 years. Leaving just before a vesting date can cost thousands.
- True-up: if you hit the yearly limit early (say, with a bonus), some plans stop matching for the rest of the year unless they "true up".