saying something can only go to a certain extent while taking action from the words that your saying can be louder and more powerful than anything your saying.
Defined contribution plans are funded primarily by the employee, called the participant, with the employer matching contributions to a certain amount. The most common type of defined contribution plan, which many people are familiar with, is a 401(k) plan. A participant may elect to defer a portion of his gross salary via a pretax payroll deduction to the plan, and the company matches according to its summary plan description, or SPD.
DEFINITION of 'Matching Contribution' A type of contribution an employer chooses to make to his or her employee's employer-sponsored retirement plan. The contribution is based on elective deferral contributions made by the employee. BREAKING DOWN 'Matching Contribution' Generally, the employer's contribution may match the employee's elective deferral contribution up to a certain dollar amount or percentage of compensation.