Skip to content

Maxing the 401(k) Match Without Leaving Money on the Table

Your 401(k) match is part of your compensation — but only if you contribute enough to capture it. Here's how to size your contribution and avoid the 'true-up' trap.

Last reviewed:

If your employer offers a 401(k) match, that match is part of your total compensation. Skipping it is the same as turning down a raise. But the rules around vesting, contribution timing, and "true-up" provisions trip up a lot of people — including people who think they're doing it right.

The core trade-off

A typical match looks something like "100% of the first 3%, then 50% of the next 2%" — meaning if you contribute 5% of your salary, the employer adds another 4%. Stop short of 5% and you forfeit some of that 4%. Permanently.

The trap most people don't see: many plans match per paycheck, not per year. If you front-load contributions to hit the IRS annual limit by August, you stop contributing for the rest of the year — and the match stops too. You leave the September–December match on the table.

When front-loading still works

  • Your plan has a "true-up" provision that retroactively pays the missed match at year-end. Confirm this in writing with HR before front-loading.
  • You're leaving the company mid-year and want to capture as much match as possible before departure.

When even contributions win

  • Your plan does not offer a true-up. Spread contributions evenly across all paychecks to capture every dollar of match.
  • You want predictable take-home pay across the year.

The vesting question

Match dollars often vest on a schedule — sometimes immediately, sometimes over 3–6 years. Unvested match is forfeited when you leave. If you're planning to job-hop within two years, factor unvested match into the offer comparison. See our guide on vesting cliffs for details.

What to ask HR

  • Is the match calculated per paycheck or per year (true-up)?
  • What is the vesting schedule for employer contributions?
  • Is there a Roth 401(k) option, and does the match go into Traditional or Roth?
  • What is the maximum match as a percentage of my salary?

The IRS publishes annual contribution limits and updates them yearly — current 401(k) contribution limits (IRS) (affiliate link — OffbookHR may earn a commission if you buy through this link. It does not affect ranking.).

This page reflects general information and is not tax or investment advice. Consult a licensed financial advisor or your HR team for guidance specific to your plan.