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.
References in periodicals archive ?
Enhancing the 401(k) plan design by moving to auto-enrollment for employee contributions and immediate eligibility for, and vesting in, employer matching contributions.
NetJets workers are also eligible for employer matching contributions if they direct some or all of their bonus into their 401(k) accounts.
Plans with fiduciary advisers are substantially more likely to have employer matching contributions.
Failure to make employer matching contributions to all the appropriate employees;
If this second option is elected, no employer matching contributions are allowed.
Among these are the ability to save current federal and state income taxes on pre-tax contributions, receiving "free money" from one's employer through the employer matching contributions, the ability to determine how money in a 401(k) plan is invested, and the ease with which a participant's benefits in a 401(k) plan can be transferred from one plan to another as an employee changes jobs.
Participants do not pay tax on any investment earnings inside their 401(k) account or on employer matching contributions.
In addition, they offer an RRSP program with employer matching contributions.
In 2010, Deloitte said there was an increase in plan sponsors offering employer matching contributions (66%) from 2009 (59%).
In a recent paper, Choi, Laibson, and I (7) study a company at which employer matching contributions were originally made in the form of employer stock, but with no restrictions on subsequent diversification.
Berkley says employer matching contributions are the key to ensuring that employees fund HSAs.
Automatic elective contributions and related employer matching contributions are, absent contrary affirmative election, invested in a QDIA.

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