Question 1

What is a 401(k) employer match?

Accepted Answer

An employer match is free money your employer contributes to your 401(k) based on how much you contribute. For example, if your employer offers a 50% match up to 6% of your salary, and you earn $85,000 contributing 6%, your employer adds $2,550 per year on top of your $5,100 contribution.

Question 2

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

Accepted Answer

Financial experts generally recommend contributing at least enough to get your full employer match — otherwise you're leaving free money on the table. Beyond that, aim for 10–15% of your salary. The IRS sets annual contribution limits ($23,500 for 2025 for those under 50), so maximize what you can within those bounds.

Question 3

What is the 401(k) contribution limit?

Accepted Answer

For 2025, the IRS allows employees under 50 to contribute up to $23,500 per year to a 401(k). Those aged 50 and older can make an additional catch-up contribution of $7,500, for a total of $31,000. Employer contributions do not count toward the employee limit but are subject to a combined employer + employee limit of $70,000.

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