Employer 401(k) Match vs Salary Raise
Leaving **employer match** on the table is an immediate 50–100% return on contributed dollars (typical formulas). A **salary raise** compounds in every paycheck but is taxed as wages—both matter in total compensation math.
Step by step
1. Capture full match first
Contribute to the match threshold before optional taxable investing.
2. Model vesting
Unvested match may be forfeited if you leave early.
3. Negotiate base after
Use salary data for role and market once match is secured.
Match vs raise
Match is often the highest guaranteed return; raises fix underpaid base permanently.
- 401(k) match: Instant return; tax-deferred; vesting schedules apply.
- Salary raise: Flexible cash; taxed now; helps future matches and SS wage base.
Use our calculators
Common mistakes
- Contributing below match while maxing IRA
- Ignoring true-up provisions
FAQ
Can I get match without contributing?
Some plans offer nonelective contributions—read your SPD.