Your 401(k) Match Is a 50% Return. Are You Taking It?

Priya is 31, earns $75,000, and her employer is offering her $2,250 a year just for saying yes. If she ignores it, she walks away from about $289,000 by 65. Here's how a 401(k) match works, and the three mistakes that quietly cost people money. A match isn't a bonus or a perk. It's part of your pay, with a condition attached. In this video I show the math with Priya (31, $75,000 salary, 22% bracket, 34 years to 65) and what happens if she claims only half of it, waits a year, or starts at 45. ⏱ CHAPTERS 0:00 The $289,000 hook 0:34 How a 401(k) match works 1:13 Why a match beats every other investment 1:39 Why people still don't take it 2:23 The default-rate trap 2:58 A match is part of your pay 3:31 Why the formula wording matters 4:06 Where the match actually goes (pre-tax) 4:40 Myth 1: I can't afford it 5:08 Myth 2: It's locked up 5:52 Myth 3: I'll start when I earn more 6:04 The math: what Priya's match grows to 6:51 The honest part: taxes at withdrawal 7:20 The cost of picking the wrong percentage 7:44 One year of waiting, and starting at 45 9:00 Leak 1: the contribution rate 9:33 Leak 2: timing and the 2026 limits 10:15 Leak 3: vesting 10:48 The account trap, no match, and changing jobs 11:59 The right order: match first 13:01 The ending 📌 KEY NUMBERS (2026) • 401(k) employee limit: $24,500 ($32,500 if 50+, a bit more at ages 60–63) • Overall limit including the match: $72,000 • Most common match formula: 50¢ per dollar on the first 6% of pay (about 1 in 8 plans) • Priya's numbers assume a 22% bracket and 7% growth. Real returns are lumpy and not guaranteed. 📚 SOURCES • PSCA summary of the IRS 2026 401(k) limits: https://www.psca.org/news/psca-news/2... • Vanguard, How America Saves 2026: https://workplace.vanguard.com/conten... • IRS: 401(k) contribution limits: https://www.irs.gov/retirement-plans/... • IRS: Vesting: https://www.irs.gov/retirement-plans/... ⚠️ This video is for education, not financial or tax advice. Your plan's rules vary, so check your own plan documents. Watch next: Roth IRA Explained → [paste video 2 link] Subscribe to Stickonomics for more videos that show the arithmetic instead of just announcing the answer. #401k #PersonalFinance #Investing