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What does matching a 401(k) contribution mean?

Matching a 401 (k) contribution means that an employer matches or mirrors an employee’s contribution to their retirement account, typically up to a certain percentage. In effect, if an employee contributes $1 to their 401 (k), an employer would also contribute $1, thereby “matching” the contribution.

What is a 401(k) employer match?

A 401 (k) is a mechanism for saving retirement funds by making pre-tax contributions through deductions from payroll. Some plans offer a 401 (k) employer match, which can be the equivalent of getting “free money” from an employer. That can help increase an investor’s retirement savings over time.

What is a 6% 401(k) match?

A 6% 401 (k) match means that an employer is willing to match up to 6% of an employee’s total salary or compensation in their 401 (k) account through matching contributions. What is a good 401 (k) match?

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