Question
What is 401k matching?
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31st Oct 2009 by Joseph Pousada
Many companies will offer employer contributions where they match a certain amount per dollar you invest up to a certain amount of your contribution percentage. As and employee you can select to have a percentage of your compensation to be contributed to your 401k. A company might decide to offer $0.50 for every dollar up to the first 5% of your compensation you select to have contributed to your plan. Following the above scenario, if you earn $100,000 per annum and select to have 5% percent contributed to your plan your contribution for that year would be $5,000 and the matched amount your employer would contribute would be $2,500.
Many companies will offer employer contributions where they match a certain amount per dollar you invest up to a certain amount of your contribution percentage. As and employee you can select to have a percentage of your compensation to be contributed to your 401k. A company might decide to offer $0.50 for every dollar up to the first 5% of your compensation you select to have contributed to your plan. Following the above scenario, if you earn $100,000 per annum and select to have 5% percent contributed to your plan your contribution for that year would be $5,000 and the matched amount your employer would contribute would be $2,500.
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20th Oct 2009 In Retirement
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Subjects: 401k,
401k matching,