A 401(k) plan provides a convenient way to build a nest egg for retirement. An attractive feature of 401(k) plans is the company’s 401(k) match, which helps employees grow their savings with some free money from the employer. If your employer offers a 401(k) match, you should find out if you are eligible to receive the match and start collecting the benefit.
401(k) match of top employers averages 6% of the employee’s eligible pay. A 2020 study by Vanguard reported that 71% of companies matched $50 cents for every $1 an employee contributed up to 6% of the eligible compensation. Only 21% of these companies match employee contributions dollar for dollar.
Average 401k match
As of June 2020, the average 401(k) match among employers in the United States currently stands at 4.7%. The average 401(k) match has been on a steady increase up from 3.5% that was reported in 2015 by the Bureau of Labor Statistics.
The majority of employers offer some form of 401(k) matching from 3% to 8%. An employer can decide to match dollar-for-dollar of the amount an employee contributes to a 401(k) plan. In this case, the employer contributes $1 for every $1 an employee contributes up to a specific limit. An employer can also make a partial patch of the amount an employee contributes. The most common partial match is $0.5 for every $1 an employee contributes.
What is a good 401k match?
If your employer has a 401(k) match, you may be wondering how the employer’s match compares to other employer’s 401(k) match.
A survey by the US Bureau of Labor Statistics reported that only 56% of companies provide a 401(k) plan for their employees, with about half of these companies providing a 401(k) match. 41% of the companies with a 401(k) match up to 6% of the employee’s salary, while only 10% of the companies match 6% or more of the employee’s salary. The survey also reported a median 401(k) match of 3% of the employee’s salary.
If your employer's 401(k) match is above the average and median match, it means you have a good 401(k) match than half of 401(k) participants.
401k match limit
401(k) contributions comprise two sides i.e. the employee contribution and the employer's match. The contributions made to a 401(k) plan should not exceed the IRS limits.
For 2021, the limit is $19,500, and if you are over 50, the limit increases to $26,000 to include catch-up contributions. This limit excludes the portion of the employer's contribution.
In 2021, the employer and employee contributions cannot exceed $58,000. If you contribute a maximum of $19,500, the employer can contribute up to a maximum of $38,500. Most employers offer 3 to 6% of an employee’s eligible pay in matching funds, but some employers can match up to 10%. However, the total contribution should not exceed the annual IRS limit for combined contributions.
Here are the 401(k) match of top US employers:
1. Amazon 401k match
Amazon is one of the top-tiers employers, and it allows employees to join its 401(k) retirement plan immediately on the date of hire as long as they are age 18 or older.
Amazon offers a 401(k) match of 50% of the employee's 401(k) contribution up to 4% of their annual contribution. This means that for every $1, Amazon will match $0.5 to your account up to 4% of the eligible pay. The match excludes catch-up contributions.
Employees become fully vested in Amazon’s 401(k) match contributions after three years of service, equivalent to 3000 hours of service.
2. Google 401k match
Google has an automatic enrollment of 401(k) participants. New employers are automatically enrolled at 10% of their eligible pay unless they elect to make a different contribution amount.
Google also provides a 50% match on the employee’s contribution up to $19,000. The company matches the greater of 100% of the employee's contribution up to $3,000, or 50% of their contribution up to a maximum of $9,500 per year.
Google offers immediate vesting of its contribution to the employee's 401(k), and you can retain 100% of the employer's contribution if you decide to leave the company at any time.
3. Microsoft 401k match
Microsoft’s 401(k) plan is built to encourage employees to save enough income for their retirement.
Microsoft offers a 50% match of the employee's contribution up to the IRS basic deferral limit. This means you get a $0.5 match for every pre-tax or Roth $1 you contribute to your 401(k).The current 401(k) matching program is an improvement from the old 401(k) matching program that matched 50% of the first 6% of an employee’s contribution up to a maximum of 4% of annual compensation.
Microsoft employees enjoy 100% immediate vesting of the employer’s contribution to their 401(k) plan.
4. CVS 401k match
As one of the leading health care companies in the United States, CVS provides a 401(k) plan for its employees with generous perks.
The company matches 100% of the first 5% that an employee contributes towards their retirement plan. The employer’s contribution becomes fully vested immediately.
The employer also contributes to the employees' health savings account to pay off healthcare costs.
5. Lockheed martin 401k match
Lockheed Martin’s 401(k) plan is one of the most generous plans in the US.
Starting 2020 January, the company increased automatic contribution from 2% to 6%, in addition to the existing 4% match. Therefore, Lockheed Martin contributes up to 10% of the employees’ compensation i.e. 4% match and 6% automatic. The 4% match applies to salaried employees, who get 50% match up to 8% of their contribution to the 401(k).
Lockheed Martin employees get immediate vesting of the employer’s contribution.
6. Northrop Grumman 401k match
Northrop Grumman provides automatic enrollment of new employees in its savings plan.
Employees can contribute 1% to 75% of their eligible pay to their 401(k) plan, and receive 4% to 7% matching depending on the date when they were hired. Employees hired before April 1, 2016, get up to a 4% match of their eligible compensation. Employees hired after April 1, 2016, are eligible for 401(k) matching up to 7%.
Employees must complete three years of service to be 100% vested in the matching contributions.
7. Boeing 401k match
Boeing offers a 75% match on the first 8% of the eligible pay that employees add to their VIP account. There is also an age-based company contribution that ranges from 3% to 5% of pay.
With over $60 billion in plan assets, Boeing has one of the largest plans in the United States.New hires are automatically enrolled in the Voluntary Investment Plan (VIP) at 4% of their eligible pay. This rate increases each April until it reaches 8% of base pay when they qualify for the full Boeing match. The employee contributions are capped at 30% of their base pay.
8. PWC 401k match
PWC 401(k) saving plan matches employees' contributions at 25% of the first 6% of their eligible pay. For example, if you earn $100,000, PWC will contribute $1,500.
Employees also benefit from the Wealth-Builder program, which is funded by PWC. New hires who join Wealth Builder get a bonus equal to 1% of the base pay.
PWC uses a graded five-year vesting schedule. Therefore, if you leave the company before the five years, you will have to forfeit part of the employer's contributions in your 401(k) account.
9. Capital One 401k match
Capital One helps employees grow their retirement savings by matching their contributions to their 401(k) account.
Capital One matches up to 7.5% of the employee’s compensation that they contribute to the 401(k) plan. First, the company gives a free 3% match and another 3% dollar-for-dollar match. The company then matches 50% of the next 3% of employee's contribution.
Therefore, if an employee contributes 6% of their eligible pay, they will get up to 7.5% employer’s match. Capital one has a two-year vesting period when employees get to keep 100% of the employer's contribution to their 401(k).
10. Intel 401k match
Intel employees can contribute up to 50% of their regular pay on a pre-tax 401(k) or Roth 401(k).
Effective from 2020, Intel is providing a 401(k) match of up to 5% of salary. This means that if you contribute 5%, Intel will also contribute 5% to your 401(k) account.
Intel also offers immediate vesting of the employer’s contribution in the 401(k) account.
11. Walgreens 401k match
Walgreens has a 401(k) matching plan known as the Walgreen Profit Sharing Plan.
New employees must complete at least one year of service to benefit from the employer’s 401(k) matching.
Walgreens employees benefit from Walgreens’ dollar-for-dollar matching up to 4% of the employee’s compensation that they contribute to the plan. The company provides immediate vesting of its contribution to the employee’s 401(k) plan.
12. Oracle 401k match
Oracle employees can contribute up to 40% of their salary on a pre-tax retirement 401(k) account or post-tax Roth 401(k) account.
Oracle offers a 50% match of the employee's first 6% of their eligible pay that they contribute to a 401(k) account. The employer's match vests over a four-year period, after which employees get to fully own the matched contributions.
13. KPMG 401k match
New employees are eligible to join KPMG’s 401(k) plan after 60 days of joining the company. They can enroll and elect to make 401(k) contributions through payroll deductions.
KPMG has a partial match of $0.5 of every $1 contributed to the plan up to 5% of the eligible pay. For example, if you contribute 5% of eligible pay to your 401(k) account, KPMG will match 2.5% of the eligible base pay for the calendar year.
The matched contributions become fully vested gradually over a five-year period.
14. Bank of America 401k match
New employees are automatically enrolled into the bank’s 401(k) plan at 3% of the eligible pay, which increases by 1% each year until it reaches 5%. Employees can change this rate at any time.
Bank of America matches employee contributions dollar-for-dollar up to 5% of the eligible pay. However, employees must complete one year of service to get this benefit. The firm also offers an additional 2 to 3% in additional annual company contribution depending on your years of service.
Employees are 100% vested in the matched contributions at all times.
15. UPS 401k match
UPS allows eligible employees to join the 401(k) plan immediately after hire. Employees can opt to contribute 1% to 50% of their paycheck to the plan.
UPS provides a 50% match of employee’s contributions made to the plan up to 6% of the eligible pay.
In 2017, the company amended its 401(k) Savings Plan to allow its non-union employees to earn a UPS Retirement Contribution starting January 1, 2023.
16. EY 401k match
Ernst and Young (EY) provides different 401(k) matching rates depending on the employee’s years of service.
EY employees who have completed one year of service get a 25% match on the first 6% contributed to their 401(k) plan. Employees who have completed four years of service get a 50% match on the first 6% of their eligible pay contributed to the 401(k) plan.
EY has a gradual vesting schedule spread over five years for employees hired on or after January 1, 2017. Employers hired before January 1, 2017, are 100% vested in the firm's matching contributions.
17. Publix 401k match
New hires can enroll in the company’s SMART plan after six months from the date of hire. To receive a Publix match, employees must be credited with 1000 or more work credit hours on their anniversary year.
Publix matches 50 cents of every dollar an employee contributes to the SMART plan, up to 3% of the base pay. Publix has a maximum match of up to $750 a year.
Employees become fully vested in the Publix match after completing three years of credited service.
18. Starbucks 401k match
Starbucks also blends employee contributions to a 401(k) savings plan with an employer’s match to boost the employee’s retirement savings. New employers are eligible to join Starbuck’s 401(k) plan within 90 days of service.
Starbucks matches contributions based on either the Basic Starbucks Match or Enhanced Starbucks match. For the basic match, employees get $1 for every $1 contributed up to 4% of eligible pay. On the other hand, the Enhanced Match gives employees a 100% match on the first 6% of eligible pay contributed to a 401(k) plan.
Employees are immediately 100% vested in the matched contributions.
19. Accenture 401k match
New Accenture employees are eligible to join the company's 401(k) plan immediately upon hire, and they can elect to make automatic payroll deductions. However, they must complete 12-months of employment to get the employer’s match.
Accenture matches 100% of the employee’s contributions up to 6% of their eligible pay.
Employees must complete two years of employment to become 100% vested in the matched contributions.
20. Raytheon 401k match
Raytheon’s 401(k) plan is known as the Raytheon Savings and Investment Plan (RAYSIP). Employees can contribute up to 50% of their eligible pay towards the retirement plan on a pre-tax or post-tax basis.
Raytheon offers a dollar-for-dollar match of up to 3% of the employee's eligible compensation for each pay period. Employees with over five years of service get up to 4% match on their eligible compensation.
Employees are immediately 100% on their own contributions and employer's match.
21. FedEx 401k match
Effective January 1, 2021, FedEx started implementing a new 401(k) plan with an increased employer’s match of up to 8%, up from 3.5%. Under the new plan, FedEx will match up to 8% of an employee contribution to the 401(k) plan.
New and current employees are eligible for the new 401(k) match rates, as the company shifts from a pension plan to a 401(k) for its employees. Current employees hired or rehired before January 1, 2020, have the choice of remaining with the old pension plan or moving to the new 401(k) retirement plan.
22. Walmart 401k match
New employers working at Walmart are required to put in at least 1000 hours of service in the anniversary year to be eligible for the employer match. Employees can still make contributions to Walmart’s 401(k) plan before they are eligible for the match.
Walmart employees who meet the eligibility requirement may qualify to get dollar-for-dollar matching up to 6% of the eligible pay for each pay period. The matching contributions are made on both pre-tax and post-tax basis, and participants will owe taxes at withdrawal.
Walmart 401(k) plan participants are immediately 100% vested in the company’s match, regardless of their years of service.
23. Wells Fargo 401k match
New employers are eligible to get Wells Fargo’s match after completing one year of service.
Once they've met this requirement, Wells Fargo will match their 401(k) contributions dollar-for-dollar up to 6% of their eligible compensation every quarter. Also, employees may benefit from a discretionary profit-sharing contribution to their retirement account depending on the company's financial performance.
Wells Fargo employees get 100% vesting on the matched contributions regardless of their years of service.
24. Facebook 401k match
Facebook offers a 50% match on employee contributions up to 7% of the eligible compensation. This compensation includes base pay, bonuses, commissions, and overtime pay. The company matches contributions for both pre-tax and post-tax participant contributions.
Employees are immediately 100% vested, and they can collect the entire matched contributions when they leave the company.
25. Cisco 401k match
Employees benefit from Cisco’s 100% match on their contributions up to 4.5% of the employee’s salary. The matching contributions apply to both pre-tax and post-tax 401(k) accounts.
Employees are 100% vested in their own contributions and the matched contributions at all times.
26. GE 401k match
General Electric (GE) allows new employees to enroll in its 401(k) as soon as they are hired, and they can contribute up to 30% of their eligible pay.
Employees benefit from both an employer’s match and the company’s retirement contribution. GE offers a 3% company retirement contribution and a 50% match of the employee’s contribution on up to 8% of the employee’s eligible pay.
The matched contributions are 100% vested at all times, and employees retain both their contributions and the employer’s contributions when leaving the company.
27. Costco 401k match
Costco employees are eligible to join the company’s 401(k) plan and receive matching contributions after 90 days of employment.
Employees can contribute 1% to 50% of their compensation to the 401(k) plan, and Costco matches 50% of the employee’s contributions (other than California Union Employees) up to a maximum employer contribution of $500 per year. California Union employees get 50% of their contribution up to a maximum employer contribution of $250 per year.
Employees are also eligible for the company discretionary contribution after one of service, which is equivalent to 1000 hours of service. They may receive discretionary contributions of 3% to 9% of the eligible compensation based on their years of service.
Employees are 100% vested in the employer’s contributions after five years of service.
28. Apple 401k match
Apple is one of the top employers with the best 401(k) matching contributions for employees.
Apple matches 50% of the first 6% of eligible pay contributed to the plan for the first two years of service. The match increases to 75% for employees who have served for two to five years, and 100% for employees with more than five years of service.
Employees are always 100% vested in the matched contributions.
29. Kroger 401k match
New employees are eligible to receive employer’s matching contributions once they are credited with 1000 hours of service during their first 12 months of employment.
Kroger matches contributions in two stages i.e. 100% match for the first 3% of eligible pay that employees contribute to the 401(k) plan, and another 50% match for the next 2% of eligible pay contributed to the plan.
The matched contributions and the employee’s own contributions are immediately 100% vested.
30. Comcast 401k match
New hires are automatically enrolled in the 401(k) plan after completing 90 days from the date of hire at a contribution rate of 3% of the eligible pay. This rate increases by 1% each year up to a maximum of 10%.
Comcast matches 100% of the employee’s contributions on the first 4.5% of the eligible pay, but the employer contribution is capped at $10,000 for highly compensated employees.
Employees are 100% vested in the employer’s match.
31. Goldman Sachs 401k match
Goldman has an automatic enrollment feature for its 401(k) plan that allows employees to be enrolled into the plan immediately upon hire. Employees can contribute up to 50% of their eligible pay to the plan.
For an employee to qualify for the employer’s match, he/she must have completed 12 months of service. Goldman Sachs matches 100% of the employee's 401(k) contributions each pay period up to 4% of the employee’s base pay.
Matched contributions become fully vested immediately.
32. JP Morgan 401k match
JP Morgan requires employees to complete 12 months of service to be eligible to join the 401(k) plan. Employees can contribute 1% to 50% of their eligible compensation to the plan.
JP Morgan matches dollar-for-dollar the employee’s contributions up to 5% of the eligible pay. The employee must contribute 5% of their eligible compensation to claim the full company match. The employer pays the matching contributions as a lump sum once a year.
Highly compensated employers with compensation above $250,000 do not qualify to receive matching contributions.
Employees get 100% vested in the matching contributions after three years of employment.
33. Morgan Stanley 401k match
Eligible employees can join the 401(k) plan immediately after the hire date. They can contribute 1% to 30% of their eligible pay to the plan.
Morgan Stanley offers dollar-for-dollar matching of the employee's contribution up to 4% of the eligible pay. This means that employees get a match of $1 for every $1 they contribute to the plan up to 4% of their eligible pay. The match can be made in cash or company stock.
Employees are fully vested in their contributions, but vesting in matching contributions depends on the employee's years of service. Employees hired on or after January 1, 2004, become 100% vested after completing three years of employment. Employees hired before January 1, 2004, have different vesting rules depending on the business units they serve.
34. Kaiser 401k match
Employees are enrolled in the company’s 401(k) plan immediately after hire at a contribution rate of 2%. There is a 1% annual increase in the contribution rate until it reaches 6%.
Kaiser contributes 5% to the employee’s retirement plan and another 1.25% match of the employee’s eligible pay. The 1.25% match was introduced to replace the defined benefit plan, which was frozen at the start of 2014.
Employees are fully vested in the employer’s match after completing five years of employment.
35. Target 401k match
Target employees are eligible to join the company’s 401(k) plan after completing 1000 hours of employment. Once eligible to join, employees can contribute up to 80% of their eligible pay to the plan.
Target matches employee contributions dollar-for-dollar up to 5% of their eligible pay. An employee must contribute at least 5% to the 401(k) plan to receive the maximum employer’s match.
Matching contributions are always fully vested at all times.
36. Honeywell 401k match
Honeywell employees are eligible to receive the employer’s match after 12 months of service. Employees can contribute up to 30% of their eligible pay.
Honeywell matches the first 8% of an employee’s eligible compensation at the rate of 87.5%, which is equivalent to a 7% annual match.
Employees are fully vested in their own contributions, but the matching contributions become fully vested after three years of service. If an employee exits the company before completing the three years of service, they forfeit the portion of the employer's contribution in their 401(k) account.
37. Dell 401k match
Dell recently increased its 401(k) match from 5% to 6% of an employee’s salary up to a maximum of $7,500 annually. The company matches the combined before-tax and Roth 401(k) contributions dollar-for-dollar up to 6% of an employee’s eligible pay contributed to the plan.
Dell employees are immediately vested in their contributions and all employer contributions.
38. United Technologies 401k match
United Technologies has an automatic employee enrollment feature in its 401(k) plan that starts at a contribution rate of 6%. This rate increases by 1% every year until it reaches 10%.
United Technologies matches 60% of an employee’s first 6% of their eligible pay contributed to the 401(k), which is equivalent to 3.5% for employees who contribute at least 6% or more into the plan.
Apart from matching contributions, United Technologies also makes automatic contributions to the 401(k) plan based on the employee’s age. Employees below 30 receive 3% in automatic contributions while those above 50 receive 5.5%.
Employees are 100% vested in the matching contributions after three years of employment.
39. USAA 401k match
USAA financial services group has one of the best 401(k) matching contribution rates, at 100% of the first 8% of eligible pay contributed to the plan.
The company also awards a bonus contribution during periods of good financial performance. The bonus ranges from 3% to 9% depending on the employee’s age.
In a good year, an employee can get up to 17% in employer contributions (8% matched contributions + 9% bonus), and up to 25% after adding in the employee’s contribution to the plan.
40. Deloitte 401k match
Deloitte’s 401(k) plan includes both before-tax and after-tax savings accounts, and employees can get a match on both types of 401(k).
Deloitte offers a 25% match on the first 6% of an employee’s eligible contributions to a 401(k).
There is a three-year employment period for the matching contributions to be fully vested.
41. PepsiCo 401k match
New employees can enroll in PepsiCo’s 401(k) plan immediately after hire. If an employee does not enroll in 60 days, they are automatically enrolled at a contribution rate of 4%. This rate increases by 1% each year until it hits 6%.
PepsiCo puts in $0.50 for every $1 an employee contributes to the 401(k) plan up to 4% of the eligible pay. The company also provides its employees with an automatic retirement contribution as part of their retirement savings. This contribution is based on the employee’s age and service, and it ranges from 2% to 9%.
Employees must complete three years of service to get fully vested in the company’s contributions.
If you don't see your company the list above, you can find your 401(k) login here.
Average 401k match 2017
The average 401(k) match in 2017 was 4.5% of eligible employee compensation. A 2017 Vanguard Study titled “How America Saves” reported an increase in the average contributions to 4.7% up from 3.9% in 2015 and 3% during the financial crisis of 2007/08.
After the financial crisis, most companies reduced or suspended their 401(k) match when their earnings dropped. As revenue stabilized, employers increased their match to retain and attract the best talents, especially in competitive sectors. Most companies also introduced automatic enrollment for new hires as an inducement for employees to save for retirement.
Calculate 401k match
If your company has a 401(k) match, you should join the plan as soon as you are eligible. An employer may offer either a dollar-to-dollar match or a partial match. In both arrangements, the amount that an employer puts into the 401(k) depends on the amount that an employee contributes up to a certain limit.
For example, assume that you earn $100,000 and your employer matches 100% of what you contribute up to 6%. Assuming that you contribute 6%, it means that you contribute $6,000 into the 401(k) plan annually. Since the employer has a limit of 6%, the employer will put $6000 into the plan. However, if the employee contributes 8% i.e. $8,000, the employer will contribute $6,000 since there is a maximum limit of 6%.
Assuming the employer has a partial matching policy of 50% of the employee’s contribution up to a limit of 6%, it means that the employer will contribute 3%. Assuming the employee contributes 6% i.e. $6,000, the employer will contribute 50% of this contribution, equivalent to $3,000 annually.
You can also use a 401(k) match calculator from Smart Asset or Bank Rate to determine how much retirement savings you could accumulate from the employer’s match.
