Employer Matching

Turbo charge your employees retirement savings by adding an employer matching feature to your company’s 401(k).

What is Employer Matching?

Employer match is a common 401(k) feature that enables the employer to contribute to an employee's retirement.

How it works

There are three common types of employer match: dollar-for-dollar, stretch and dollar amount.

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Why offer it

It incentivizes employees to save for retirement and helps employers create a competitive benefits package.

How Fisher can help

There are many options when it comes to employer matching programs. Fisher helps business owners tailor their matching strategy to their individual needs.

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Safe Harbor Guide

Learn how businesses utilize a Safe Harbor employer matching feature to pass compliance testing and help employees save more for retirement.

There are four primary ways to implement a 401(k) employer match:

Dollar for Dollar Match

An employer will match employee contributions dollar-for-dollar up to a certain percentage of the employee's total compensation. For example, a 100% match of up to 3% of an employee's compensation.

Stretch Match

An employer matches 50% of employee contributions up to a certain percentage of the employee's total compensation. For example, 50% match up to 8% of an employee's compensation, for a total match of 4% of the employee's salary.

Dollar Amount Match

An employer matches a set dollar amount to each employee. For example, an employer matches the first $5,000 of an employee's contribution to the plan.

Safe Harbor Match

An employer uses one of three Safe Harbor strategies to automatically pass compliance testing: a non-elective contribution, a basic Safe Harbor match, and an enhanced Safe Harbor match. Click here for more details.

  • Compliance Testing

  • Corrective Distributions
  • Safe Harbor Plans
  • Eligibility and Vesting Schedules
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Compliance Testing

All 401(k) plans must pass annual non-discrimination testing, which is designed to ensure that Highly Compensated Employees (HCEs) don’t benefit significantly more than Non-Highly Compensated Employees (Non-HCEs).

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Corrective Distributions

If an employer’s plan fails non-discrimination testing, the plan is considered ‘top-heavy’ and contributions made by (HCEs) are paid back through corrective distributions.

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Safe Harbor Plans

Many employers choose a Safe Harbor match because it allows the plan to pass non-discrimination testing and enables all employees, including HCEs, to contribute up to the 2024 IRS maximum of $23,000 (under age 50) /$30,500 (over age 50).

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Eligibility and Vesting Schedules

Because matching can be costly, many employers use eligibility restrictions and vesting schedules to strategically manage costs by incentivizing desired employee behaviors.

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Safe Harbor Contribution Chart

Compare different Safe Harbor options to help your plan automatically pass compliance testing.

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Contact Us

One of our 401(k) business specialists would love to talk to you about your company’s retirement plan needs.

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(844) 238-1247

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