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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
2 Employer contributions for 492.7 513.3 526.3 546.4
North Wales Police and Crime Commissioner Arfon Jones warned there was even worse to come because of proposed changes to the police pension scheme which would see a 10% hike in employer contributions.
Despite annual comments from PERS leadership, particularly outgoing Executive Director Pat Robertson, that everything was hunky-dory, this new bump in employer contributions reveals either the naivete or the deception of those comments.
Summary paragraph: When the plan year ends on a weekend; vesting schedules for employer contributions; why the new fiduciary rule covers IRAs not non-ERISA 403(b)s
But Steve Webb, a former pensions minister who is now director of policy at Royal London, highlighted figures in the report showing what he described as "disappointing" employer contributions so far.
Employers and employees are not subject to payroll taxes at any time on employer contributions to retirement plans.
14 August 2014 -- Boston-based mutual fund company Fidelity Investments has released survey results that suggest many US workers still value employer contributions such as profit sharing or a 401(k) company match as one of the most important components of their benefits offering.
Anyone who does opt-out, however, would of course cease to benefit from the employer contributions that would have otherwise been made on their behalf.
workers need to save between 11 percent and 15 percent, including employer contributions, over their entire working career to replace 85 percent of income in retirement.
--Employer contributions (except mandated employer contributions) or member contributions provided the member has been gainfully employed on at least a part time basis during the financial year in which the contributions are made (this is commonly referred to as the work test).
* It allows rank-and-file employees--as well as highly compensated employees--to receive employer contributions that are fully vested right away.

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