Understand your 401(k) and employer match: test your skills
Your employer's 401(k) match is an instant 50–100% return — here's how to claim every dollar. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Capture the full employer match
- Understand vesting
- Raise contributions painlessly
- Practice
1. What should you capture first?
- Practice
2. Vesting determines…
- Practice
3. Cashing out a 401(k) when changing jobs usually…
- Key idea
4. Which statement best explains "The match comes first"?
- Key idea
5. Which statement best explains "Pre-tax softens the change"?
- Key idea
6. Which statement best explains "Raise with your raise"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Salary $70,000. Employer matches 50% up to 6%. You contribute 6%. What is the match per year?
Show the answer
$2,100
You: 6% × $70,000 = $4,200. Match: 50% × $4,200 = $2,100.
Look up your employer’s match formula and check your contribution reaches it.
More tests in this bootcamp
- Understand your 401(k) and employer match
- Open the idea of an IRA: account first, investments inside
- Compare Roth and Traditional IRAs through the tax timing
- Understand the backdoor Roth IRA and its tax pitfalls
- Understand an HSA’s tax benefits and receipt records
- Explore how claiming age changes Social Security benefits
- Use the 4% rule as a starting point, with its limits
- Plan for required minimum distributions
- Check the costs and commitments of early retirement withdrawals
- Final exam: Retirement accounts