401k Match True-Up Calculator

401(k) Front-Loading and True-Up Guide

Employees who hit the annual IRS elective deferral limit before year-end risk forfeiting employer matches without a true-up provision.

Formula

Annual Potential Match = Salary * Match Cap % * Match Rate %
Match Paid = (Annual Potential Match / Pay Periods) * Contributing Periods
True-Up Recovery = Annual Potential Match - Match Paid

Frequently Asked Questions

What is a 401(k) true-up provision?

A plan feature where employers calculate match eligibility on annualized salary rather than per-paycheck limits at year-end.

Why does front-loading cause lost match?

Once you hit the IRS elective limit, payroll stops 401(k) deductions, cutting off per-paycheck employer match formulas.