Retirement & Savings

What Is an Employer 401(k) Match?

An employer match is a contribution an employer makes to an employee's retirement account, such as a 401(k), based on how much the employee contributes. A common formula is a percentage of the employee's contribution up to a percentage of salary, for example 50% of contributions up to 6% of pay.

Example

With a 50% match up to 6% of a 60,000 salary, an employee who contributes 6% (3,600) receives an employer contribution of 1,800. Contributions above 6% would not be matched under that formula.

Vesting

Some plans require employees to work a certain number of years before matched contributions fully belong to them, a rule called vesting. The plan's documents describe the schedule.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.