What Does 6 401k Match Mean
When an employer offers a 401(k) match, it means they contribute an amount of money to an employee’s retirement savings plan for every dollar the employee contributes up to a certain percentage of their salary. For example, a 6% 401(k) match means the employer will contribute 6% of an employee’s salary to their 401(k) plan for every dollar the employee contributes up to 6% of their salary. This can be a great way to save for retirement and take advantage of the tax benefits of a 401(k) plan.
Understanding 401(k) Matching Contributions