401k employer match confusion!?

OK I need some math help, I dont know if I am stupid or if this is confusing to others as well. I am trying to figure out what percentage to contribute to my 401k, becouse I only want to contribute up to the percentage a year that my employer is going to match.

Here is my employer's matching guidelines:
The Company makes a matching contribution to your plan equal to $0.25 per $1.00 of the first 6% of eligible compensation you save each pay period. So, for every dollar you save in the plan (up to 6% of pay), the Company adds an additional $0.25 to your account. This match is invested according to your investment elections on file.

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So I am allowed to contribute up to 5% of my pretax pay, and I make 130,000 a year.

So what percentage should I contribute to only take advantage of the max the employer will contribute and not a dime more.

Thanks so much!

So if its the first 6% if i'm only allowed to contribute 5 percent (thats the cap) does that mean they are matching 100%? That cant be right.

"of the first 6%"
That's your answer.

You can contribute up to 6% and get the full match.

If you contribute 7%, you'll get matched on the first 6% only.

You should contribute 6% in order to get the maximum amount from your employer.

As mentioned before, you should be putting more into your 401k instead of just 5%. Your goal should be to max out your allowable contribution (roughly 15K to 16K).

Their only matching .25c on every dollar and the stock market stinks. As suggested, set up an IRA with a bank. If you're young and do not need the money you can invest in insurance cos. such as New York Life and Lincoln Financial. I'm only getting 5% on the rtn but I can't lose a dime and has nothing to do with the stock market. Better to be safe than sorry later.

You've got it right...you are matched on the first 6 % of your pay....25 cents for every dollar. If you wanted to maximize your match then you'd put in 6%. At 130k your maximum match from the company will be $1,950.00

However, if the company limits your contributions to 5% then your maximum match ends up being 25cents up to first 5%. Reason they are likely doing this is to ensure passage of the discrimination tests. You're considered a highly compensated employee...they are likely limiting you to make sure the plan passes tests and avoid paying refunds. So if you're limited then put in 5%.