Definition
Money your employer adds to your 401(k) based on what you contribute, commonly 50-100% of the first 3-6% of salary. It is an instant, guaranteed return; contributing below the full match leaves pay unclaimed.
Why it matters
No investment on earth reliably returns 50-100% instantly; the match does, guaranteed, every payday. Capturing all of it outranks nearly every other financial move, including most debt payoff.
Example
An employer matches 100% of the first 4% of an $90,000 salary. Contributing $3,600 brings $3,600 of free employer money; contributing 2% instead quietly declines $1,800 of pay.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.