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Employer 401(k) match 2026: 50% of 4% on $96,000 is $1,920

A 50% match on the first 4% of $96,000 is $1,920 after you defer $3,840. Defer only 2% and the match falls to $960. A 3% cap on the same pay is $1,440.

Calcufast Team
7 min

The leftover match notes this week were all dollar-for-dollar: 100% of 4% on $72,000, 100% of 5% on $84,000, 100% of 6% on $90,000. The leftover most $96,000 plans still use is 50 cents on the dollar on the first 4%.

On $96,000 of recognized pay, 50% of the first 4% is $1,920, and only after you defer $3,840 yourself.

That is a different story from 100% of 4% on $72,000 → $2,880, 100% of 5% on $84,000 → $4,200, 100% of 6% on $90,000 → $5,400, and 100% of the first 4% on $60,000 (IRA vs 401(k) match first, $2,400). Same engine. Half the rate.

Run the employer match calculator →

Hub: United States calculators.

Plan formula, not a promise

Vesting, true-up, and the §415(c) annual-additions cap are out of this engine. Recognized pay stops at the 2026 IRC 401(a)(17) limit of $360,000. Estimate, not tax advice.

Direct answer: $96,000 → $1,920

  1. Recognized pay = min($96,000, $360,000) = $96,000
  2. You defer 4% = $3,840
  3. Matched percent = min(4%, 4% cap) = 4%
  4. Match rate = 50%
  5. Employer match = $96,000 × 4% × 50% = $1,920
Employer match (this engine)

recognized pay = min(compensation, $360,000)

matched % = min(your deferral %, plan cap %)

employer match = recognized pay × matched % × match rate

Three leftovers on the same $96,000

Your deferralFormulaYou put inMatch
4%50% of first 4%$3,840$1,920
6%50% of first 4%$5,760$1,920
2%50% of first 4%$1,920$960
6%50% of first 3%$5,760$1,440

Deferring past the cap does not raise the match. 6% on a 4% cap at 50% is still $1,920.

If you stop at 2%, the plan only matches 2%. That is $960, not half of a 4% you never deferred.

What this is not

  • Free money if you defer 0%. The match is a percent of the percent you actually defer, up to the cap.
  • The $24,500 elective cap. Employee deferrals have their own limit. 401(k) room after $15,000.
  • A SIMPLE plan. SIMPLE elective room is $17,000. SIMPLE room after $8,000.

No. Matched percent is min(6%, 4%) = 4%. Then 50% of that 4% is 2% of pay, which is $1,920. The extra 2% you deferred is unmatched.

No. The $24,500 figure is employee elective deferrals. Employer match is a separate annual-additions bucket.

Recognized pay stops at $360,000. 50% of the first 4% on that cap is $7,200.

Official sources

IRS COLA limits · annual compensation $360,000 (2026)

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