The top companies in the world offer generous 401k employer matches in order to attract top talent and to encourage their employees to participate in their 401k plan.
What is 401k employer matching?
An employer match is an additional contribution made by an employer towards an employee's 401k plan. Many employees consider it as free money on top of their regular compensations.
What is the average employer match?
The average employer match is between 4% and 6% of compensation.
What is considered a "good" match?
Anything above 5% of compensation is considered a good employer match. As you'll see below, some companies offer employer matching up to 25% of compensation.
Of course, employees are bound by the IRS contribution limits each year, which is $20,500 in 2022 ($27,000 if over 50 years of age). So the best plans usually result in around $3,000 to $10,000 in annual employer match contributions. Most of the top companies also offer immediate eligibility and vesting.
Here are the companies with the highest 401k employer matches in 2022.
Blizzard offers one of the highest employer matching contributions for their employees with full dollar-for-dollar matching up to 25% of employees' compensations. All employees are immediately eligible for employer matching and 100% vested.
Dollar General also offers full dollar-for-dollar employer matching contributions up to 25% of employee compensation, with immediate vesting.
Uber offers one of the most generous 401k employer matches and has one of the simplest, cleanest structures as well. Employees get full employer matches dollar-for-dollar up to 10% of their compensation.
Visa offers employees an incredible 200% employer match up to 10% of contributions. If employees contribute 5% of their compensation, Visa will contribute 10%.
Bosch USA offers employees a 75% company match on up to 9% of compensation.
USAA offers one of the highest employer matches at 200% of employee contributions, up to a maximum of 8% of compensation. If employees contribute 4% of their compensation, USAA will contribute 8%.
Samsung offers both full match and partial match employer matching contributions. The first 3% of contributions are matched dollar-for-dollar. The next 3% are 50% partial matched for a total of 4.5% in employer matching each year.
Vimeo requires 2 years of vesting period, but offers a higher-than-most employer match at 10% of employee compensation. The maximum employees can receive per year is $10,000.
Comcast offers a simple dollar-for-dollar employer match up to 6% of compensation with immediate eligibility and vesting.
Biogen offers employees a 200% employer match up to 6% of contributions. If employees contribute 3% of their compensation, Biogen will contribute 6%.
Amgen is one of the few companies that offer nonelective contributions. Even if employees don't contribute to their accounts, Amgen will contribute 5% of employees' salaries into their 401k each year. Additionally, they also offer full match contributions up to 5% of compensation. The total maximum amount in employer match is 10% each year.
Boeing also provides nonelective contributions to employees' 401k plans. Even if they don't contribute at all, Boeing will still contribute 3% to 5% of employees' salaries into their 401k. If employees do make contributions to their 401k, Boeing provides a 75% partial match up to 8% of compensation.
Noticing a pattern? Airlines have great 401k programs. Southwest Airlines offers one of the cleanest, simplest structures for their 401k employer match contributions. Employees can receive dollar-for-dollar matching up to 9.3% of their eligible compensation with immediate vesting and eligibility.
BOK Financial offers a very unique 401k employer match structure for their employees. All employees receive 401k employer matches of 6% of their compensation. Depending on the length of time employed by the company, the partial match percentage can quadruple. Employees who worked under 4 years at BOK receive a 50% partial match. Employees who worked 4-10 years receive a full dollar for dollar match. Employees who worked 10-14 years receive 150% employer match. And employees who worked over 15 years at BOK receive a 200% match.
Farmers Insurance provides up to 10% 401k employer matching. They contribute 4% automatically as a base match through nonelective contributions. Additionally, they also offer a full dollar-for-dollar match up to 6% of compensation.
It's rare for a company not to set a cap on the amount of employer 401k contribution matching. Ultimate Software offers employees a 45% partial match up to the yearly contribution limits set by the IRS. While it may sound lucrative, the total amounts to around $10,000 per year. The total matching contributions are on par with other companies ranking in this list.
Employees at AT&T who have worked for at least one year can start receiving an 80% partial match to their 401k plans. However, it appears that they offer full match once you get promoted to a managerial position. Managers at AT&T have reported that they receive dollar-for-dollar matches up to 6% of compensation.
3M offers employees a nonelective base contribution of 3% of compensation for all employees. In additional, they also offer dollar-for-dollar matching up to 5% of compensation.
Apple offers a 50% partial employer match for employees with under 2 years of service. Employees with 2-5 years of service receive 75%, employees with more than 5 years of service receive a full dollar-for-dollar match up to 6% of compensation.
Charles Schwab will first contribute $250 to your 401k when you contribute your first $1 into your plan. Additionally, they also offer full match contributions up to 5% of compensation.
Starbucks offers a simple employer match structure. They'll match employee contributions dollar-for-dollar up to 5% of compensation.
Microsoft doesn't set a cap on employer matched contributions. Instead, they offer 50% partial matches up to the IRS contribution limit for the year. When employees maximize their contributions, the total amount received from employer matching is usually around the range of $10,000 per year.
Walmart requires that employees work at least for one year at the company before becoming eligible for employer matching. After a year, employees can start receiving full match contributions up to 6% of their salary with immediate vesting.
Accenture has a longer vesting period of 2 years, but immediate eligibility for employees to start receiving employer matches to their 401k. Employees can receive full match contributions up to 6% of their eligible compensation.
Amazon employees can immediately start receiving 50% matches to their 401k plan up to 4% of their compensation. However, the vesting period lasts 3 years or 3,000 hours of service, whichever comes first.
Google employees can either receive 100% of dollar-for-dollar matched contributions up to $3,000, or 50% matches up to the IRS contribution limit. If employees want to maximize their company 401k contributions, they can receive a larger employer match. Google also sets a fair structure for those who wish to invest their money elsewhere by offering dollar-for-dollar matching up to $3,000 per year.
While the employer match amount is slightly higher than the average company in this list at 7% of compensation, Honeywell requires employees to work for 3 years before becoming eligible for receiving employer match contributions.
Most large tech companies have immediate eligibility, but Adobe requires at least 15 months of service before employees can start receiving employer match contributions. Vesting period is longer than most as well at 2 years. However, once employees become eligible they can start receiving full dollar-for-dollar matches to their 401k up to 6% of their compensation.
Not the highest employer match, but a very simple structure that employees appreciate. Netflix offers dollar-for-dollar matching up to 4% of compensation with no vesting period and immediate eligibility.
Meta provides full employer matching up to 50% of the IRS contribution limit for the year. All employees are eligible for employer matching immediately upon employment and are 100% vested.
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