Matching Contribution


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.

BREAKING DOWN '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.

  1. Retirement Contribution

    A monetary contribution to a retirement plan. Retirement contributions ...
  2. Single-Life Payout

    One of two payout option methods an employer uses to distribute ...
  3. Employee Savings Plan

    A pooled investment account provided by an employer that allows ...
  4. Elective-Deferral Contribution

    A contribution arrangement of an employer-sponsored retirement ...
  5. Nonelective Contribution

    A type of contribution an employer chooses to make to each of ...
  6. Employee Contribution Plan

    A company-sponsored retirement plan where employees may elect ...
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