How does a 401k employer match work?

A 401k employer match is when your company contributes money to your retirement account based on how much you contribute. For example, a common arrangement is a 50% match up to 6% of your salary, meaning if you earn $60,000 and contribute 6% ($3,600), your employer adds another $1,800. Some employers do a dollar-for-dollar match up to a certain percentage. To get the full benefit, you generally need to contribute at least enough to maximize the match, otherwise you're leaving free money on the table. Many employers also have a vesting schedule, meaning you only fully own the matched funds after working there for a certain number of years, such as three to five years.