The Short Answer

Tips for Maximizing Your 401(k) Match

Karen Wallace, CFP®

Many companies match a portion of their employees' 401(k) contributions as an incentive for their workers to save for retirement. But sometimes the rules aren't clear, and the math can be tricky. Here, we tackle a few reader questions.

Does my company's matching contribution to my 401(k) count toward my annual contribution limit?
Yes and no. Strictly speaking, the company's matching contribution does not count against your own employee annual contribution limit, which currently stands at $19,000 ($25,000 if you are 50 or older). So you can contribute up to that amount, and whatever your employer matches is irrelevant. If you participate in more than one 401(k) plan, the limit applies to your total contributions to all plans.