What is a company “match” on my 401(k)?

Often times companies (particularly larger businesses) will offer a percentage match for money you decide to deposit into a employer sponsored retirement plan like a 401(k).  They usually place a limit on the amount they are willing to match and must follow certain legal restrictions particularly as it relates to their most highly compensated employees.  As an example, it is not uncommon for a company to match $.50 for every $1 you deposit into the 401(k) plan up to 6% of salary.

Posted in Employee Benefits |

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