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Retirement Planning

Employer Matching Program

One common type of employer matching program is known as "50% of the first 6%." This means that for every dollar an employee contributes to their 401(k) plan, the employer will add 50 cents. However, this matching only applies up to 6% of the employee's gross pay. If the employee does not contribute at least 6%, they will miss out on this additional compensation from the employer. It's important to note that not all 401(k) plans have an employer matching program, so it's important to check with your specific plan.
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