Your 401(k) Employer Match: Free Money You Might Be Leaving Behind

## What is an Employer Match? Common formulas: - 100% match up to 3% of salary - 50% match up to 6% - Dollar-for-dollar up to 4% ## The Math $75,000 salary, 100% match up to 4%: - You contribute $3,000/year - Employer adds $3,000/year - Over 30 years at 7% → **$283,000** from the match alone ## Priority Order for Retirement 1. 401(k) up to employer match (free money) 2. Max out Roth IRA ($7,000/year) 3. Max out 401(k) ($23,500 limit) 4. Taxable brokerage account