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.

RELATED TERMS
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RELATED FAQS
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    If an employer has a Safe Harbor 401(k) plan that states matching contributions will apply to catch up contributions for ... Read Answer >>
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    Learn how Savings Incentive Match for Employees, or SIMPLE IRA, contributions are reported for the participant on Form W2 ... Read Answer >>
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