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Employer 401(k) match 2026: 50% of 5% on $78,000 is $1,950

A 50-cent match on the first 5% of $78,000 is $1,950 after you defer $3,900. Defer only 2.5% and the match falls to $975. A 4% cap on the same pay is $1,560.

Calcufast Team
7 min

The calculator default is 100% of the first 4% on $100,000 ($4,000). The leftover most $78,000 stubs need is a 50% match on the first 5%.

On $78,000 of recognized pay, 50% of the first 5% is $1,950, and only after you defer $3,900 yourself.

That is a different story from 100% of the first 6% on $90,000 (match 100% of 6%, $5,400), 100% of the first 5% on $84,000 (match 100% of 5%, $4,200), 100% of the first 4% on $72,000 (match 100% of 4%, $2,880), and 100% of the first 3% on $66,000 (match 100% of 3%, $1,980). Same engine, different knobs.

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: $78,000 → $1,950

  1. Recognized pay = min($78,000, $360,000) = $78,000
  2. You defer 5% = $3,900
  3. Matched percent = min(5%, 5% cap) = 5%
  4. Match rate = 50%
  5. Employer match = $78,000 × 5% × 50% = $1,950
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 $78,000

Your deferralFormulaYou put inMatch
5%50% of first 5%$3,900$1,950
8%50% of first 5%$6,240$1,950
2.5%50% of first 5%$1,950$975
6%50% of first 4%$4,680$1,560

Deferring past the cap does not raise the match. 8% on a 5% cap is still $1,950. Half the rate of a 100%-of-5% plan is not half the cap. It is half the dollars on the same 5%.

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 $12,250.
  • A SIMPLE plan. SIMPLE elective room is $17,000. SIMPLE room after $8,000.

No. Matched percent is min(8%, 5%) = 5%. Then 50% of that 5% is 2.5% of pay, or $1,950.

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 5% on that cap is $9,000.

Official sources

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

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