What is a 401(k) match?

Last week we talked about 401(k)s and who they actually belong to. Your 401(k) is yours, with one occasional exception: matching dollars may not be yours right away. So what are matching dollars? Great question!

If a company offers a 401(k) match, they will contribute additional money to your 401(k) based on how much you contribute. In other words, when you contribute to your 401(k), your company will contribute some too. The dollar amount an employer will match is limited, so it’s important to understand how those limits work. Here’s the whole story on employer matches and how they work.