> I don’t know if you understand how 401K matching works on the backend. A lot of times the employers are capped on their own plans at a percentage rate that ma

> I don’t know if you understand how 401K matching works on the backend. A lot of times the employers are capped on their own plans at a percentage rate that matches their employee’s participating. I actually do not understand this. Could you please explain more? What does an employer being "capped on their own plans" mean? > But, easier version is this is a perk, not your base salary When I make a decision on a job offer, the 401k match, health insurance premium, free lunch and snacks etc. all factor in and they're all worth a certain amount of money. Money is money and how it's labeled, "perk" or "base", is irrelevant. If my employer ends 401k matching, I'll treat it as a pay cut mentally. My ultimate "fantasy" is to eliminate 401k altogether and instead let everyone contribute whatever the 401k annual limit is to an IRA. The employer can simply add matching funds to your IRA and you're free to have your retirement accounts anywhere you please.