401(k)/IRA Contribution & Match Optimizer mechanism

Model scope

The honest educational label is appropriate, but the instrument needs explicit disclosures that returns, raises, match availability, fees, taxes, inflation, vesting, and statutory or plan contribution limits are omitted unless modeled. The four vectors interpret projected balance as employee contributions only and match_value as current-year dollars; this interpretation must be confirmed before the formula can receive PASS.

• The future-value formula is named but not explicitly provided; its result depends on whether contributions occur at the beginning or end of each year and how annual raises are applied.
• The stated match_value formula computes a current-year employer match, not the projected retirement value of employer matching contributions.
• The output 'dollars left on the table if under-matching' has no stated formula. Under the simple single-tier assumption, it would be max(match_cap% - contribution%, 0) * salary * match_rate.
• It is unspecified whether projected balance includes employee contributions only or both employee and employer contributions.
• The employer match formula input is underspecified; real plans may use tiers, per-pay-period rules, vesting, or annual limits.

Units and conventions

• Percentages are entered as decimal fractions: 6% = 0.06, not 6.
• Salary is annual salary in dollars, and match_value is current-year dollars unless otherwise specified.
• The test vectors use end-of-year contributions, annual salary growth beginning in year two, a constant annual return, and a nonnegative integer number of years.
• For the vectors, projected employee balance uses FV = S*c*(((1+r)^n - (1+g)^n)/(r-g)) when r != g, and FV = S*c*n*(1+r)^(n-1) when r = g.
• The displayed match formula assumes one match rate applied to the lesser of the employee contribution percentage and the employer match cap percentage.

Inspectable vector

One of 4 source-bound review vectors:

{
  "inputs": {
    "salary": 60000,
    "contribution_percent": 0.06,
    "match_cap_percent": 0.06,
    "match_rate": 0.5,
    "annual_raise": 0.03,
    "expected_return": 0.07,
    "years_to_retirement": 30,
    "contribution_timing": "end_of_year",
    "percent_units": "decimal"
  },
  "expected_outputs": {
    "projected_employee_balance": 466649.33,
    "annual_match_value": 1800,
    "annual_dollars_left_on_table": 0
  },
  "working": "Annual contribution = 60000 * 0.06 = 3600. FV factor = ((1.07^30 - 1.03^30) / (0.07 - 0.03)) = (7.61225504 - 2.42726247) / 0.04 = 129.62481425. Projected balance = 3600 * 129.62481425 = 466649.33. Match value = min(0.06, 0.06) * 60000 * 0.5 = 0.06 * 60000 * 0.5 = 1800. Full-match amount = 0.06 * 60000 * 0.5 = 1800. Dollars left = 1800 - 1800 = 0."
}

Failure boundary

BREAK_CLAIMED · SELF_FLAGGED

The raw annuity-with-growth formula produces a division-by-zero result when expected return equals annual raise unless the equal-rate limit is implemented. The salary-period convention can also change the result by a factor of twelve if monthly salary is mistaken for annual salary.

Other records

Sources and evidence

These pointers bind the page to evidence. They do not grant authority or collapse verification into deployment.

• VERIFIED_LEDGER.json
• evidence-tranche5/tranche5-results.json
• BOUNDARY_HAZARD_CATALOG.json