Employer match

An employer match is contributions your employer makes to your retirement account based on what you contribute. Common structures:

• Dollar-for-dollar up to 3% of salary: you contribute 3%, employer contributes 3%. Total 6%.
• 50 cents on the dollar up to 6%: you contribute 6%, employer contributes 3%. Total 9%.
• 100% up to a flat dollar amount: employer matches every dollar up to, say, $3,000 a year.

The match is free money. It's part of your compensation that requires only the action of contributing yourself to unlock. Failing to contribute enough to capture the full match is leaving 3-6% of your salary on the table each year — a meaningful pay cut over a career.

Capturing the full match should be the very first goal of any retirement savings plan, before paying down anything except the highest-interest debt. The instant 100% return beats nearly every other use of the money.

Vesting rules often apply to the employer's contributions — see that entry for what happens if you leave before fully vested.