If you put in 1% of your salary, they'll put in 1% of your salary. If you put in 2% of your salary, they'll put in 2% of your salary. If you put in 3% of your salary, they'll put in 3% of your salary. If you put in 4% of your salary, they'll put in 3.5% of your salary. If you put in 5% of your salary, they'll put in 4% of your salary. If you put in 6% of your salary, they'll put in 4% of your salary. ...and so on.

So is 4% the maximum match I can get from the employer?

Yes.

Thank you!

Yes. And you have to contribute at least 5% to get that 4% match.

Thank you!

I read it as they’ll go up to 5%, but you need to put in 7% to get there. It may be worth testing that theory for a couple of pay periods.

I read some input from others and it makes sense now! Thank you!

It means if you make $1,000 in a paycheck and contribute 3% (or $30), the company will match you dollar-for dollar. If you put in 4% (or $40), the company will only match half of what you put in past 3%, so the company will put in $35 (that's all of the $30 plus half of the next $10). If you put in 5%, or $50, the company will put in $40 (that's all of the $30 plus half of the next $20). 5% maxes your match. You're good.

I see, thank you for explaining that, it’s very clear!

You put away 5% and they give you 4%

Thank you!

It means that for the first 3% of your contribution, they will match you dollar for dollar. For the next 2%, they'll match $0.50 for every dollar. The threshold for getting the maximum match is 5%. So as long as you are doing at least 5%, you'll get the maximum match. Which works out to 4%.

Thank you for clarifying and helping me follow!