What is the typical employer contribution (matching funds) for a 401(k)?

My employer will match .50 cents on the dollar. But you have to contribute at least 3% of your pre-tax dollars per pay period in order to get the matching contribution. My husband said this was a good match - I'm not sure if it is. What does your employer match or what is typical?

I had a 401(k) package that matched up to 5%, and another package that was nothing. But $0.50 is typical and good. As previously stated, it is free money to you.

Also look at the vesting requirement - how long until you are entitled to the employer contributions. Some employers have step vesting and others have cliff vesting.

Step vesting implies that you are entitled to more of the employer contribution as you work longer. For instance, you are entitled to 20% after one year of service, 40% after two, and so on.

Cliff vest means you are entitled to nothing until you have served x number of years (typically 3 or 5).

50% of the first 6% is very typical.

This is "free money" to you.

If your plan is half-way decent, you should always contribute at least enough salary to get the match. If it's a reasonably good plan, go for the full 15%. I have no regrets on doing so. Just don't put all the money into company stock.

(One company I worked for would, once a year, put 4-10% of your salary into the 401K in lieu of a pension plan. They always did this as stock, but did send out emails reminding employees to balance their portfolios and sell the stock if they needed to. This same company gave employees credit for the time they'd worked at companies they acquired, so I was vested before I started working there.)

My employer doesn't match at all. So from my perspective you have a very good deal.

100% up to 5% of your gross.

50% match of my first 5% contributed is what I get

that minimum of 3% in order to get matching is unusual = 50% is pretty standard - my company matches 50% of my first 6% and puts the money into my account monthly, plus we have a shot at a supplemental 1-45 match after year end company results are determined - we got 3% last yr, so they paid up to 6% in addition to our own contributions

It is a good match...my vague memory is that the "typical" plan offers some form of a 3% match....such as yours.

Excellent plans tend to offer matches of 6-7% and/or a separate percentage of income regardless of what an employee puts in.

I think Safe Harbor rules are immediate vesting, plus 3% of the first 3% plus 50% of the next 2% up to 6% match total.