How it works
The first tier matches a chosen portion of compensation; the additional tier starts after it. For $100,000 compensation, a 5% employee contribution, a 100% match on the first 3% and a 50% match on the next 2%, the employee contributes $5,000 and the employer match is $4,000. The total is $9,000.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Annual compensation used by the plan | $100,000.00 | Required unit: $. Use a non-negative value. |
| Your contribution | 5 % of compensation | Required unit: % of compensation. Use a non-negative value. Allowed range: 0–100. |
| First matching tier | 3 % of compensation | Required unit: % of compensation. Use a non-negative value. Allowed range: 0–100. |
| Employer match on the first tier | 100 % of your contribution | Required unit: % of your contribution. Use a non-negative value. Allowed range: 0–200. |
| Additional matching tier | 2 % of compensation | Required unit: % of compensation. Use a non-negative value. Allowed range: 0–100. |
| Employer match on the additional tier | 50 % of your contribution | Required unit: % of your contribution. Use a non-negative value. Allowed range: 0–200. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Annual compensation used by the plan
- $100,000.00
- Your contribution
- 5 % of compensation
- First matching tier
- 3 % of compensation
- Employer match on the first tier
- 100 % of your contribution
- Additional matching tier
- 2 % of compensation
- Employer match on the additional tier
- 50 % of your contribution
Complete example results
- Total annual contributions
- $9,000.00
- Your annual contribution
- $5,000.00
- Estimated employer match
- $4,000.00
- Unused match under this formula
- $0.00
Reading the result
Gross pay, deductions and net pay are separate quantities. Check the year and scope of the tax or pay model; personal exceptions outside the calculation are not added to the result.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
Does an annual match estimate guarantee I receive the full amount?
No. Plan compensation definitions, per-paycheck matching, true-up provisions, eligibility and vesting can affect actual contributions. Enter your plan’s formula; this illustration does not enforce current contribution or compensation limits.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: irs.gov