Thursday, September 9, 2010

401k??

what does this mean?

employer matching contribution

One half of a participant's elective deferral amount up to 6% of eligible compensation that is deferred. The maximum matching contirbution, therefore is 3% of a participant's eligible compensation, Any deferrels over 6% of eligible compensation are not matched.





so does that mean I can put in 3% and the company will match it 3% as well to make a maximum of 6%??



or can I make a contribution of 6% and they will match that 6% making a total of 12%??