Glossary
Employer match
Definition
An employer match is the contribution an employer adds to a workplace retirement plan based on what the employee defers, such as 50% of deferrals up to 6% of pay. It doesn't count toward the employee's deferral limit but may vest over time.
How employer match works
Contributing at least enough to receive the full match is usually the first savings priority, because it's an immediate return.
Matches may be subject to a vesting schedule; leaving early can forfeit unvested amounts.
Why it matters to a firm
Spotting clients who miss part of their match is a quick, valuable win.
Calculators that use employer match
Questions about employer match
Does the match count toward my limit?
No.
What is vesting?
Earning ownership of employer contributions over time.
Is the match pre-tax?
Traditionally yes; some plans now allow Roth matching.
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Related terms: Elective deferral
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