Educational reference only. 2025 limits cited from IRS Notice 2024-80. Updated January 2025.
Employer match
Most employer match formulas reduce to a single expression. Read it as three separate inputs: what you defer, what the plan caps, and what counts as eligible pay.
employer match = min(your deferral %, plan cap %) × eligible pay
| Your deferral | Counted toward match | Match at year end |
|---|---|---|
| 2% | 2% | $1,700 |
| 4% | 4% | $3,400 |
| 8% | 4% (capped) | $3,400 |
Source: your plan's Summary Plan Description, effective for the current plan year. Confirm the rate, cap, and pay definition with your plan administrator before changing elections. Run your own numbers in the match calculator, then read what an uncaptured match costs over a full career.
Checked: your deferral sits at or above the plan cap, so the formula pays in full. Unchecked: your deferral sits below the cap, and the difference returns zero.
Employer match
Enter gross pay, the percent you defer, your plan cap, and the employer rate. The tool applies match = min(your deferral percent, plan cap) times eligible pay times employer rate, then shows the dollars your current deferral captures and the dollars it misses.
Outputs assume a dollar-for-dollar match on eligible pay and exclude vesting schedules, plan compensation definitions, and the IRS elective deferral limit. Compare wording in the plan variations list, or test a wider set of inputs in the contribution calculator.
Employer Match · Missed Match Delta
Same eligible pay, same plan formula, three contribution rates. Only the rate moves, so the difference in the last two columns is the price of stopping short.
| Contribution rate | Your annual deferral | Match captured | Match left on the table | 10-year match forgone |
|---|---|---|---|---|
| 0% | $0 | $0 | $2,400 per year | $24,000 |
| 3% | $1,800 | $1,800 | $600 per year | $6,000 |
| 6% | $3,600 | $2,400 | $0 per year | $0 |
Deferrals at every rate shown stay under the 2025 elective deferral limit of $23,500, so the contribution rate is the only variable in play. Check your own plan formula and vesting schedule before relying on these numbers.
Decision line: my rate already reaches the plan's full match threshold? Test your own pay and rate in the match calculator
Plan Variations
Two plans can advertise the same formula and still pay differently. Vesting, true-up language, and per-paycheck limits decide how much of the match you keep. The match formula is only the first question to ask.
Employer dollars are yours on a schedule. A three-year cliff vests nothing until year three. A six-year graded schedule might vest 20 percent per year starting in year two. Leave early and the unvested balance returns to the plan.
Check: open the summary plan description, find the vesting table, and note the dates you cross each step.
With a true-up, the plan compares the match paid each pay period against the match your full-year deferrals would have earned, then deposits the difference. Without one, front-loading or back-loading contributions can quietly shrink your match.
Check: ask whether the match is calculated per pay period or on annual pay.
Many plans match up to a percentage of each paycheck rather than a percentage of annual pay. Contribute nothing for six months and 20 percent after, and a per-paycheck formula may pay match on only part of the second half.
Check: confirm whether the match ceiling resets every pay period.
Decision line: confirm the vesting table, true-up status, and per-paycheck match ceiling before you change your deferral percentage. Compare it against what an uncaptured match costs across a full year.