An employer match is a contribution the employer makes to a 401(k) in proportion to what the employee defers. The formula is set by the plan, for example 50% of contributions up to 6% of pay.
The IRS counts employer matching contributions toward the overall annual additions limit ($72,000 for 2026, see the limits guide), not toward the employee deferral limit. When an employee makes designated Roth contributions, IRS guidance says the matching amounts go into a pre-tax account.
Formula
match = min(employee contribution, cap % × salary) × match rate
Example
A plan matches 50% of contributions up to 6% of pay. Salary is $80,000, so the cap is 0.06 × $80,000 = $4,800. An employee contributing $4,800 or more receives 0.5 × $4,800 = $2,400. An employee contributing only $2,000 receives $1,000.
Test a match with the 401(k) calculator, and see 401(k) vs Roth 401(k) for account choice.
Educational only, not tax or investment advice.