401(k) employer match calculator for two-tier formulas.
Illustrate how a tiered matching formula translates into dollars for one participant. Enter eligible compensation, the deferral rate and up to two match tiers. The defaults show a common design: 100% of the first 3% of pay deferred plus 50% of the next 2%.
Illustrative estimates only. Results do not determine eligibility, legal compliance, tax treatment or required corrective action.
Employer match estimator
Model a simple two-tier match formula. This is a formula illustration, not a determination of your plan's actual matching contribution.
Illustration assumes compensation is eligible and the entered formula applies.
The math behind the result
Tier 1 match
The lesser of the deferral rate and the tier 1 percentage, multiplied by the tier 1 match rate.
Tier 2 match
Any deferral above tier 1, up to the tier 2 percentage, multiplied by the tier 2 match rate.
Employer match in dollars
Compensation × (tier 1 match + tier 2 match).
Match as % of pay
Employer match ÷ compensation. With the defaults and a 6% deferral, the match is 4% of pay.
Good uses
- Explaining a proposed match formula to a plan sponsor
- Checking how much of the match a participant leaves on the table at a lower deferral rate
- Comparing two formulas side by side for the same employee
What it does not do
- It does not apply the IRS compensation limit, the 402(g) deferral limit or the 415(c) annual additions limit
- Payroll-period matching, true-ups, vesting and eligibility rules are not modeled
- Safe harbor requirements depend on the plan document and notices, not just the formula
Frequently asked questions
Is 100% of the first 3% plus 50% of the next 2% a safe harbor formula?
That pattern is the basic safe harbor matching formula, which works out to 4% of pay for a participant deferring at least 5%. Whether a plan actually qualifies as safe harbor depends on its document, notices and other requirements.
Does the calculator handle per-payroll matching?
No. It shows an annual illustration. Plans that match each payroll period without a true-up can produce a different result for participants whose deferrals vary during the year.
Why might the real match be lower?
Plan terms such as eligible compensation definitions, eligibility dates, annual limits and vesting can all change what a participant actually receives.
Related tools and guides
Section 415(c) annual additions limit checker
Check a participant's 401(k) annual additions against the Section 415(c) limit: the lesser of the dollar limit or 100% of compensation. Default 2026 limit $72,000.
ADP/ACP test estimator
Free online ADP and ACP test calculator: compare HCE and NHCE average deferral and contribution percentages against the basic nondiscrimination limits.
SECURE 2.0 small employer tax credit calculator
Estimate the SECURE 2.0 startup-cost credit, employer-contribution credit and auto-enrollment credit for a small employer starting a 401(k) plan.
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