About 401(k) Matching

What’s a 401(k)?

A 401(k) is a type of retirement savings plan sponsored by an employer. It lets employees save and invest a portion of their paycheck before taxes are taken out. Taxes on the money are deferred until it is withdrawn from the account, which generally occurs after retirement.

Employers may also choose to match a portion of their employees' contributions to the plan. 401(k) plans are named after the section of the Internal Revenue Code that created them. They are one of the most common types of employer-sponsored retirement plans in the United States.

What is 401(k) matching?

401(k) matching is a contribution that an employer makes to an employee's 401(k) retirement savings plan. The employer's contribution is usually a percentage of the employee's own contribution, up to a certain percentage of the employee's salary.

For example, an employer might offer to match 50% of an employee's contributions, up to 6% of the employee's salary. This means that if the employee contributes 6% of their salary to their 401(k) plan, the employer will also contribute 3% (50% of the employee's contribution).

Employer matching contributions can be a great way for employees to save for retirement, since they effectively receive free money from their employer that they can use to increase their savings.

Why we have a 401(k) matching policy

Our company values the financial wellbeing of our employees, and we believe that offering a 401(k) plan with company matching is an important part of supporting their long-term savings and retirement planning. As such, we have implemented a 401(k) matching policy.

We encourage all employees to take advantage of this opportunity to save for their future, and we are committed to supporting their long-term financial goals.

Our 401(k) Matching Policy

How it works

Under this policy, our company will match a portion of the contributions that employees make to their 401(k) plan, up to a specified maximum amount. The specific details of the matching program, including the matching percentage and the maximum annual contribution, will be outlined in the 401(k) plan documents.

Eligibility

To be eligible for company matching, employees must enroll in our 401(k) plan and must make contributions to the plan on a regular basis. The company will then match a portion of those contributions, up to the maximum annual contribution, and will deposit the matching funds into the employee's 401(k) account.

In addition, you must:

1. Meet a minimum contribution requirement: We require employees to contribute a certain amount of money to their 401(k) plan before we will begin matching contributions.
2. Meet a minimum hours requirement: We require employees to work a certain number of hours per week or per month in order to be eligible for 401(k) matching.
3. Be an active employee: We only match contributions for active employees and not for employees on leave or on disability.

Tips for 401(k) matching

Here are some tips to consider as you enroll in 401(k) matching:

1. Understand the plan details: It is important for employees to understand the details of the 401(k) matching plan, including the company's matching contributions, the vesting schedule, and any fees associated with the plan.
2. Maximize contributions: To take full advantage of our matching contributions, employees should contribute as much as they can afford to the 401(k) plan, up to the legal limit.
3. Keep track of contributions: Employees should keep track of their own contributions and the company’s matching contributions to ensure that they are receiving the full benefit of the plan.
4. Review the plan regularly: Employees should review their 401(k) plan regularly to ensure that their investment choices align with their retirement goals and that they are on track to meet them. This may include reviewing the investment options and asset allocation, as well as re-balancing the account as necessary.