What is a 401(k) match?

A 401 (k) match is a contribution by an employer to an employee's deposits in the retirement fund. Think of it as an addition to your salary, to be paid years down the road. The employer may match all or part of each dollar you contribute up to a set maximum. A 401 (k) match is often vested.

What is employer matching 401(k) contributions?

Employer matching of your 401 (k) contributions means that your employer contributes a certain amount to your retirement savings plan based on the amount of your annual contribution. Depending on the terms of your employer's 401 (k) plan, your contributions to your retirement savings may be matched by employer contributions in several ways.

Can my employer match my 401(k)?

One way your employer could contribute to your 401 (k) is by matching 100% of your contribution up to the cap. If we stick to the original example above, your employer match will max out at 6%. So if you, for example, contribute 5% of your salary to your 401 (k), your employer will contribute the same amount.