Why this is correct (Q13 — total $4,000 when contributing 4% with 100% match): The employer match description “100% up to 4% of salary” means the employer will contribute one dollar for every dollar you contribute, up to 4% of your salary. For a $50,000 salary, 4% equals $2,000 (0.04 × $50,000). If you contribute 4% ($2,000) and the employer matches 100% up to that 4%, the employer contributes an additional $2,000. The total annual inflow (employee + employer) therefore equals $2,000 + $2,000 = $4,000. This type of arithmetic clarifies how much “free” or supplemental saving the employer adds when you meet the match threshold, a useful metric when prioritizing contributions. Note this calculation isolates contributions only and does not include investment returns, fees, or vesting nuances.

Practical takeaway & planning tips: Use this simple calculation to evaluate how much your employer’s match is worth in dollar terms and to compare competing job offers or plan options. If you’re short on cash, prioritize contributing at least up to the match cap because it effectively doubles (in this 100% example) your contribution on the matched portion — an immediate, guaranteed return. Also check vesting rules (unvested employer match could be forfeited if you leave), how the plan matches across pay periods, and any annual true-ups the plan may perform. Keeping a small spreadsheet that models salary, deferral percent, and match rules helps you forecast total annual retirement inflows as salary changes.