Matching Contribution

Matching Contribution

A type of contribution an employer chooses to make to his or her employee's employer-sponsored retirement plan. The contribution is based on elective deferral contributions made by the employee.

Notes:

Generally, the employer's contribution may match the employee's elective deferral contribution up to a certain dollar amount or percentage of compensation.

See also: Active Participant Status, Defined Contribution Plan, Elective Deferral Contribution, Employee Contribution Plan, Non-Elective Contribution, Pension Plan, Salary Reduction Contribution, Simplified Employee Pension, Simple