[rconti]

Nobody knows. Microsoft's own release makes no sense. You (and your employer, combined) cannot contribute more than $18,000 tax-free per year. It's either 100% match of $9,000 on your $9,000 to make $18,000, or it's 50% match of your $12,000 to make $18,000. It can't be both things that the press release says it is.

My best guess is that they meant to say they now match 100%, but we won't know for sure until they correct the press release.

[rhc2104]

Actually, employer contributions do not count towards the $18k maximum per year in contributions. This is the specific advantage of having a 401k match in the first place, as it allows employees to have more tax deferred savings than otherwise possible.

Source: http://www.bankrate.com/finance/retirement/employer-match-co... (Technically, with employer match, it can go up to $53k)

[toomuchtodo]

Can also go up to $53K with after tax employee contributions, which can be rolled out into a Roth IRA upon separation from the employer.