What Is The Average 401k Employer Match For 2024?

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If your company offers a 401k plan, there’s a good chance they also provide employer matching. A study by the Plan Sponsor Council of America showed that 98% of companies with a 401k also offer matching contributions.

In employer matched 401k plans, employers contribute to an employee’s 401k, up to a specified amount. You can think of it like a bonus on top of your salary. How much employers contribute varies depending on the company but usually ranges between 4% and 6% of salary.

Let’s say your annual salary is $50,000:

So if you contribute $10,000 pre-tax (deducted from your paycheck before taxes):

Companies also have different vesting schedules, which determine when you can access the money. Regardless of how it’s structured, it’s worth exploring how to  take full advantage of your company’s 401k match since it can be a significant opportunity to increase retirement savings.

What is 401k Matching?

Matching 401k contributions are additional funds that your employer contributes to your 401k retirement plan. Many employees consider it as an extra bonus on top of their salaries. If your company 401k plan offers employer matching, they will match your 401k contributions up to a specific amount.

✏️ Example: How Much Money Can You Get?

Let’s say your company offers 401k employer matching up to 5% of your salary. If your annual income is $100,000, the maximum amount your employer will contribute is $5,000 but only if you also contribute at least $5,000. To get the full employer match, you need to contribute at least 5% of your salary. If you contribute less, your employer will only match what you put in.

Types of 401k Matching

The percentage is different for each company, and they may choose to structure matching contributions through partial matching, full matching, or non-matching contributions. Let’s take a look at each one.

1. Partial Match

With a partial match, employers contribute a smaller percentage of what you contribute to your 401k. The most common structure is a 50% match, up to a certain amount. So if you contribute $1, your employer will contribute $0.50.

✏️ Example: How Much Money Can You Get With A Partial Match?

Let’s say your employer offers a 50% partial match, up to 6% of your salary. If you make $100,000 per year at the company, the maximum your employer will contribute to your 401k is $3,000. Because they offer a 50% partial match, you’ll need to contribute $6,000 (6% of your salary) to receive the full employer match (50% of $6,000 = $3,000) to your 401k.

2. Full Match

Also known as a dollar-for-dollar match, a full match allows employers to match 100% of your contributions up to a limit. So if you contribute $1, your employer will contribute $1 as well.

✏️ Example: How Much Money Can You Get With A Full Match?

Going with the same example, if you earn $100,000 per year and your company matches 100% of your contributions up to 6% of your salary, you only need to contribute $6,000 to receive the full employer match in your 401k.

3. Non-matching Contributions

Less common than the first two, some companies contribute to your 401k even if you don’t make your own contributions. These are often called nonelective contributions.

📝 Tip: Always check your company’s 401k policy. Some employers offer matching but have long vesting schedules (more on that below).

📌 Also read:How to Find a Lost 401k Account

What is the Average 401k Employer Match?

The average 401k employer match in 2025 is around 4% to 6% of salary.

According to a recent study by the US Bureau of Labor Statistics, 41% of companies that offer a 401k plan match up to 6% of employees’ salaries. Only a few companies offer more than 6%, with the top employers offering up to 25%.

While this is a fair increase from the 3.5% average in 2015, it hasn’t changed much since 2020. So if you’re getting at least 4% to 6% in 401k employer matching in 2025, it’s considered a “good” 401k match. Anything above 6% would be considered “great.”

How Much Can You Contribute to a 401k?

We’ve summarized below the contribution limits for 2024 and 2025.

401k Contribution Limits for 2025

✏️ How much can you personally contribute?

✏️ Total 401k contribution limit (including employer contributions)

401k Contribution Limits for 2024

✏️ How much can you personally contribute?

✏️ Total 401k contribution limit (including employer contributions)

📌 Also read: 401k Contribution Limits & Deadlines For 2024 & 2025

Eligibility

If your company offers a 401k match, you’re eligible to participate. Most companies will start offering employer match contributions as soon as you start your employment. However, some companies require a waiting period in order to become eligible.

Vesting

Vesting refers to the amount of time you need to work for a company before the employer’s matched contributions become fully yours. Vesting periods are often used as an incentive to encourage employees to stay longer with the company.

Every company has different vesting schedules for their employer match contributions.It can range anywhere between immediate to six years. If you depart the company before your employer match becomes fully vested, you’ll only be able to take a portion of the employer’s contributions based on how long you’ve worked there.

✏️ Example: How Much Money Can You Keep If You Leave Early?

Let’s say your company contributes $4,000 to your 401k each year. If the company has a four-year vesting schedule where you earn 25% per year:

📝 Important Note: Not all companies have long vesting periods. In fact, many employers offer immediate vesting. According to a study by Plan Sponsor Council of America, around 46% of 401k plans in 2019 offer immediate vesting of employer matched contributions.

Employer Matching for Roth 401k Contributions

A 401k has two different accounts – Traditional 401k and Roth 401k. 

✏️ Example: How Employer Matching Works

Let’s say you’re earning $100,000 annually:

In both cases, if your employer offers a 6% match, they’ll contribute $6,000 to your Traditional 401k account.

📝 Important Note: Not all companies offer a Roth 401k account. If they do, your Roth contributions are still eligible for employer matching. However, employers are not allowed to contribute to a Roth account and matched contributions will go into your Traditional 401k account.

Wrapping Up

Employer-matched contributions to your 401k can be a significant opportunity to increase retirement savings. 

If your company offers employer matching, consider contributing enough to receive the maximum employer match each year. Employer matching amounts and structures differ with each company, with the most common being a 50% partial match up to 6% of your salary.

Moreover, the best company 401k plans offer immediate eligibility with no vesting period. However, some companies require new employees to work at least a year before receiving employer-matched contributions. Depending on the vesting schedule, employees may need to wait up to six years to fully own the employer contributions in their 401k accounts.

📌 Also read: 35 Companies with the Highest 401k Match

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