Matching Contribution

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DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Matching Contribution'

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

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