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Employer Matching Contribution

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Employer matching contribution
The amount, if any, a company contributes on an employee's behalf to the employee's retirement account, usually tied to the employee's own contribution.

Employer Matching Contribution
Money an employer offers to an employee's IRA or other retirement fund. Normally employers will offer an equal amount that the employee contributes up to a certain dollar amount or percentage of income. This is considered an employee benefit and allows a worker to save more (and accrue applicable interest) without enduring financial hardship.


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Companies are facing increasing risk of fiduciary liability lawsuits from disenchanted employees who are seeing their retirement benefits diminished, their employer matching contributions eliminated, or their benefits reduced or terminated.
It also provides comprehensive benefits including an employee savings plan with an employer matching contribution and flexible work arrangements such as a 35-hour work week and telecommuting options.
3) For a discussion of employer matching contributions in 401(k) plans, see Keenan Dworak-Fisher, "Employer Generosity in Employer-Matched 401(k) plans, 2002-03," Monthly Labor Review, September 2007, pp.
 
 
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