Rule one

Always get the employer match

If you take one thing from this site, take this. Capture every dollar of employer match before any other contribution decision. The match is the largest, most consistent, and most predictable return you will ever earn.

The case in three sentences

Free money beats every investment thesis

A 50 percent employer match converts every dollar you contribute into $1.50 instantly. The S&P 500 has averaged about 10 percent per year before inflation. The match wins every year, with no market risk and no waiting.

Skipping the match is not a savings decision. It is a compensation decision: you are voluntarily reducing your total pay.

Match value over a career
$227,000

A common 50 percent match up to 6 percent of a $75,000 salary, compounded for 30 years at 7 percent. That is the dollar value of just the employer's contribution, separate from your own.

Full match deep dive →
Three rules

If you remember nothing else

1

Contribute the match cap, every paycheck

Whatever percentage of salary triggers the full match, contribute exactly that. If your match is 50 percent up to 6 percent, contribute 6 percent of every paycheck.

2

Front load with caution

Some plans (true up plans) match every paycheck. Others true up annually. If your plan does not true up, do not max your 401k by July or you forfeit the rest of the year's match.

3

Check vesting before you leave

If your match is on a graded or cliff vesting schedule, leaving the company before vesting forfeits the unvested portion. ERISA caps the longest schedule at 6 years.

Then what

After the match is captured

With the match secured, the rest of the contribution order falls into place. Roth IRA next, then back to the 401k, then HSA, then taxable brokerage. The match sits at the top and never moves.