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. Employee Contribution Plan

    An employee contribution plan is an employer-sponsored savings ...
  2. After-Tax Contribution

    A contribution made to any designated retirement or any other ...
  3. Additional Voluntary Contribution ...

    An extra allocation of funds to a retirement savings account ...
  4. Elective-Deferral Contribution

    An elective-deferral contribution is a contribution an employee ...
  5. Auto Enrollment Plan

    An employer’s decision to sign employees up to have a percentage ...
  6. National Insurance Contributions ...

    National Insurance Contributions are payments made by employees ...
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