Business and Personal Finance Dictionary

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• MATCHING CONTRIBUTION
  
  A matching contribution is money your employer adds to your 401(k) account. It's usually a percentage of the amount you contribute up to a cap that the employer sets. The matching amount and any earnings are tax deferred until you withdraw them from your account. 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.
  
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