matching contribution
Parallel employer donation
A matching contribution is money an employer adds to an employee's retirement account based on what the employee contributes—typically matching dollar-for-dollar or at some percentage up to a limit: The company offers a 50% matching contribution up to 6% of salary.
Employees are often urged to contribute enough to get the full match, since it's essentially free money.
The term also applies to grants requiring recipients to raise funds that the grantor will match.
- employerOne who employs others
- 401kEmployer-sponsored retirement savings
- retirement accountTax-advantaged savings vehicle
- retirementLeaving the workforce permanently
- pensionRetiree's ongoing benefit
vesting · payroll · pay period · benefit · savings · rainy day fund · incentive · percentage · eligible · enrollment · sign up · fund · salary · deduction · take home pay · investment · plan · HR
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