How does a 401k match work and why does it matter?

A 401k match is when your employer contributes money to your retirement account based on how much you contribute. For example, if your employer offers a 50% match up to 6% of your salary, and 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, which is even more generous. It matters because it's essentially free money added to your compensation. Leaving it on the table by not contributing enough to get the full match is like turning down part of your salary. Combined with tax-advantaged growth over decades, even a modest employer match can add tens of thousands of dollars to your retirement savings through compounding.