Employer match
Money your employer adds when you contribute.
An employer match is extra money your employer puts into your 401(k) when you contribute, up to a limit.
How it works
A common formula is 50% of what you contribute, up to 6% of your salary. Contribute less than the limit and you leave part of the match unclaimed.
Matches often vest over time, which means you may need to stay a certain number of years to keep all of the employer's money.
ExampleOn a $60,000 salary, contributing 6% puts in $3,600 a year. A 50% match up to 6% adds $1,800 more, an instant 50% return before any market growth.