What is a 401k match?

By
7 years ago

A 401k (or other retirement plan type) match is when your employer contributes to your account, as a retirement savings gift or bonus, when you make contributions to your own account.

A match is a great way to boost your retirement savings. In order to capture the full match, however, you need to save enough to capture the match. In many retirement plans with matches, people capture a portion of the match but don’t save enough to obtain the full match, and are therefore throwing money away that they can’t go back and get later.

Note: Not all retirement plans offer a match, match formulas vary, and some matches are subject to a vesting schedule. Contact your HR department for details specific to your plan.

This article is for informational and educational purposes. Any hyperlinks to third party websites are not endorsements and outside content is believed to be reliable but has not been independently verified. Consult an objective financial advisor for guidance as appropriate.