Matching Contribution

Business / Taxes / Matching Contribution: A matching contribution is money your employer adds to your salary reduction retirement savings account, such as a 401(k). It's usually a percentage of the amount you contribute up to a cap that the employer sets, such as 50% of your contribution up to 5% of your salary. The matching amount and any earnings are tax deferred until you withdraw them from your account. In most plans, employers are not required to match contributions, but may do so if they wish. Employers also determine, within federal guidelines, how long you have to work for the company in order to be fully vested in the matching contributions.

Other Words for Matching

Matching Verb Synonyms: corresponding, homologous, comparable, equivalent, complementary
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Excess Contribution

Business / Taxes / Excess Contribution: An excess contribution occurs when the salary deferrals or matching contributions of highly compensated employees are higher than the amounts permitted by federal law. If that happens, the company mus MORE

Matching Contribution

Business / Taxes / Matching Contribution: A matching contribution is money your employer adds to your salary reduction retirement savings account, such as a 401(k). It's usually a percentage of the amount you contribute up to a cap that the e MORE

Matching Concept

Business / Finance / Matching Concept: The accounting principle that requires the recognition of all costs that are associated with the generation of the revenue reported in the income statement. MORE

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