One of the best ways to build your retirement savings is to work for a company with a fantastic 401(k) matching contribution policy. Under a 401(k) policy, employees receive free money on top of their regular compensation.
According to a 2020 study by Vanguard, the average 401(k) match from top employers is 6% of the employee’s eligible pay. In fact, 71% of companies surveyed matched $0.50 for every $1 an employee contributed, up to 6% of their eligible compensation. On the other hand, only 21% of companies provided a dollar-for-dollar match.
A 401(k) plan is an excellent way for employees to financially secure their retirement and a fantastic opportunity for employers to attract some of the best talents in the industry.
In this article, I will go over what 401(k) employer matching is, the key terminologies you should know about, what makes a good 401(k) plan, and the 30 best 401k match companies in the United States in 2023.
What Is 401(k) Company Match?
In the United States, some employers offer retirement benefits as part of their employee benefits package, including making contributions to the employee’s 401(k) retirement savings account that matches the exact contribution made by the employee. The main aim of having a 401(k) company match is to encourage you to save and provide you with additional funds to boost your retirement savings.
Retirement investing website My Retirement Paycheck recently unveiled it’s list of the top 401k match companies.
The details of the 401(k) company matching may vary from one employer to another. Typically, the employer may allocate a certain percentage of the employee contributions to their retirement savings account or match employee contributions dollar-for-dollar match up to a certain limit. Let me explain how this works by using an example.
Suppose my employer matches 50% of the first 6% of my salary. In that case, every month, I must set aside 6% of my salary towards my 401(k) retirement savings, and my employer will add an additional 3% (50% of 6%) to my 401(k).
What Is a Good 401(k) Match?
According to the US Bureau of Labor Statistics, approximately 56% of companies offer employees a 401(k) plan. However, only half of these companies provide a 401(k) match. Among the companies that offer a match, only 41% match up to 6% of the employee’s salary, while 10% match 6% or more.
The same US Bureau of Labor Statistics survey revealed that the median 401(k) match is 3% of the employee’s salary. If your employer contributes more than the average to your 401(k), that’s considered a good match. However, some companies go above and beyond for their employees, making them exceptional employers.
Understanding Key Terminologies Related to 401(k) Employer Matching
There are four key terms related to 401(k) matching, and if you’re unfamiliar with them, let me give you a quick explanation to help you understand what they mean:
- Type: There are two types of 401(k) match: full company match or partial match. A full company match refers to when an employer offers a dollar-for-dollar match to its employees, while a partial match is when an employer contributes a certain percentage. Sometimes, an employer may provide non-elective contributions where they will contribute money to the employee’s 401(k) plan even if the employee themselves does not contribute to it.
- Amount: This term refers to the maximum amount an employer will contribute to the employee’s 401(k). Some employers may choose to contribute a specific dollar amount, while others may provide contributions according to a percentage.
- Eligibility: Some employers require an employee to work for a certain period of time before they can be eligible for the 401(k) match.
- Vesting period: There is either immediate vesting or a vesting period (in years). What this means is that employers offering immediate vesting allow funds to be vested immediately to the employee, while those with a vesting period will require the employee to work for a certain number of years before they can gain access to the employer’s contributions. If there is a vesting period and an employee leaves before that, they may only receive a portion of the employer contribution. The purpose of the vesting period is to encourage employees to remain with the company for long-term employment.
30 Companies with Best 401(k) Match in 2023
If you’re a recent graduate looking for a job or a professional looking to move away from your existing company to a new one, my list of the top 30 companies with best 401(k) match in 2023 can help guide you on the companies you should consider when applying for a job.
Blizzard
Blizzard, one of the top companies with the best 401(k) match in the US in 2023, offers an impressive full dollar-for-dollar matching employees’ contribution of up to 25% of the employee’s eligible compensation to their 401(k) plan for each pay period. With immediate eligibility and vesting, you can start taking advantage of this generous employer match right away.
Dollar General
Dollar General, a chain of variety stores focused on making shopping stress-free and affordable, also stands out with their full dollar-for-dollar matching contribution of up to 25% of eligible compensation and immediate vesting and eligibility. This straightforward structure makes it easy to maximize your savings potential from the date of joining.
Uber
Uber, known for its innovative approach, offers one of the most generous 401(k) company matches in the industry. You can receive dollar-for-dollar employer-matching contributions of up to 10% of their compensation, helping you save for retirement and drive toward your financial goals.
Visa
Visa, an American multinational financial services corporation, takes it a step further with an incredible 200% employer match up to 10% of contributions for each pay period. This means that if you contribute 5% of your compensation, Visa will contribute 10% to your 401(k) plan, doubling your savings and helping you build a substantial retirement nest egg.
Bosch
Bosch Group, the leading global supplier of technology and services, offers a partial match of 75% on up to 9% of compensation, providing a generous contribution to your retirement savings. With immediate eligibility and vesting, you can start building your retirement savings immediately.
USAA
USAA, an American financial services group of companies with the highest 401(k) match, stands out with its 200% employer match on employee contributions, up to a maximum of 8% of compensation. Suppose I contribute 4% of my compensation. In that case, the company will allocate 8% for each pay period!
Samsung
Samsung, one of the world’s largest producers of electronic devices, offers a unique combination of full and partial match employer contributions. The first 3% of contributions are matched dollar-for-dollar, and the next 3% are 50% partially matched, for a total of 4.5% in employer matching each year. This flexible structure allows you to maximize your savings potential based on your contribution levels.
Vimeo
Vimeo (an American video hosting, sharing, and services platform provider), although requiring a 2-year vesting period, offers a higher-than-most employer match at 10% of employee compensation. With a maximum contribution of $10,000 per year, you can take advantage of this generous employer match to increase your retirement savings.
Comcast
Comcast, the largest American multinational telecommunications conglomerate and one of the best 401(k) match companies, keeps it simple with a dollar-for-dollar employer match of up to 6% of compensation. With immediate eligibility and vesting, you can start saving for your retirement immediately and take advantage of this generous employer match to build your nest egg.
Biogen
Biogen, an American multinational biotechnology company, offers a 200% employer match up to 6% of contributions, providing a substantial contribution to employees’ retirement savings. By contributing just 3% of their compensation, you can receive the full 6% employer match, doubling your savings and helping you reach your retirement goals.
Amgen
Amgen, one of the world’s largest independent biotechnology companies, sets itself apart by offering non-elective contributions of 5% of employees’ salaries, even if employees don’t contribute to their 401(k) accounts.
Additionally, they provide a full match on 5% of compensation, bringing the total maximum amount in employer match to 10% each year. This unique structure ensures that you can save for retirement, even if you are unable to make contributions yourself.
Boeing
Boeing, the premier manufacturer of commercial jetliners for decades and one of the best 401(k) match companies, also offer non-elective contributions to employees’ 401(k) plans, ranging from 3% to 5% of compensation, depending on the length of employment.
In addition, they provide a 75% partial match up to 8% of compensation, helping you maximize your savings potential and build a secure retirement.
Southwest Airlines
Southwest Airlines, the world’s largest low-cost carrier, sets the bar high with its 401(k) program, offering a full match of up to 9.3% of compensation with immediate eligibility and vesting.
This straightforward structure makes it easy for you to maximize your savings for the future while enjoying a rewarding career in the airline industry.
BOK Financial
BOK Financial, a financial services holding company headquartered in Tulsa, takes a unique approach with their 401(k) employer match, offering a full match of up to 6% of what an employee contributes, but with a twist.
The partial match percentage increases based on length of employment, ranging from 50% to a whopping 200% of compensation. This means long-term employees can potentially receive double or even triple their contributions, making BOK Financial’s 401(k) program stand out from the crowd.
Farmers Insurance
Farmers Insurance, an American insurer group of vehicles, homes, and small businesses, knows the importance of helping their employees save for retirement, and their 401(k) program reflects that.
The company has the highest 401(k) match providing automatic non-elective contributions equal to 4% of eligible compensation as a base match, and also offers full dollar-for-dollar matches up to 6% of compensation. This combined contribution of up to 10% can help you build a solid retirement nest egg from day one.
Ultimate Software
Ultimate Software, the leading provider of Web-based payroll and workforce management solutions and one of the best 401(k) companies breaks the mold by not having an upper limit on the amount of employer 401(k) contribution matching.
Instead, they offer a generous partial match of 45% up to the IRS contribution limit. While the total amount may be around $10,000 per year, it’s still a substantial benefit that can help you save for your future while enjoying your career at Ultimate Software.
AT&T
AT&T, the world’s largest telecommunications company by revenue, takes a tiered approach to their 401(k) employer match, offering a partial match of 80% for employees with at least one year of service and potentially a full match for employees in managerial positions. This incentive encourages you to stay with the company and work towards career growth while also building your retirement savings.
3M
3M, an American multinational mining and manufacturing company, keeps it simple and generous with their 401(k) program, offering a non-elective base contribution of 3% of compensation for all employees, in addition to a dollar-for-dollar employer matching contributions of up to 5% of compensation.
This combined contribution of up to 8% can provide a solid foundation for you to save for your retirement while working at 3M.
Apple
Apple, the world’s largest tech company by revenue, recognizes the value of long-term employees, and its 401(k) program reflects that. They offer a partial match of 50% for employees with less than two years of service, 75% for employees with 2-5 years of service, and a full dollar-for-dollar employer matching contributions for employees with more than five years of service, all up to 6% of compensation. This progressive match structure encourages loyalty and tenure, rewarding you for your dedication to the company.
Charles Schwab
Charles Schwab, an American multinational financial services company with the highest 401(k) match, goes the extra mile by contributing $250 to employees’ 401(k) plans as part of their first payment and then contributes $1 for every dollar they contribute.
In addition, they offer a full match of up to 5% of compensation, providing a solid incentive for you to save for your retirement while enjoying a rewarding career at Charles Schwab. You are immediately vested in Schwab’s company matching contributions.
Starbucks
Starbucks, a chain of coffeehouses and roastery reserves, keeps it simple with a full dollar-for-dollar employer matching contributions of up to 5% of compensation. This straightforward structure lets you quickly understand and maximize your 401(k) benefits while working at Starbucks, helping you build a brighter financial future.
Microsoft
Microsoft, an American multinational technology company best known for its software products and highest 401(k) match, does not have a limit on employer-matched contributions, offering a generous partial match of 50% for the year. This means you can potentially receive a significant match, up to around $10,000 per year, helping you save for retirement while enjoying a successful career at Microsoft.
Walmart
Walmart, one of the top companies with best 401(k) match in the US in 2023, offers a full match type with contributions of up to 6% of compensation. However, you must work at Walmart for at least one year before becoming eligible for employer matching. Once eligible, you can immediately receive full match contributions.
Accenture
Accenture, another leading company with the highest 401(k) match, has immediate eligibility for employees to start receiving employer matches, but with a vesting period of 2 years. Accenture offers a full match type with contributions of up to 6% of compensation, allowing you to achieve your retirement goals quickly.
Amazon
Amazon, a renowned employer, provides a partial match of 50% to an employee’s 401(k) plan, up to 4% of their compensation. While eligibility is immediate upon starting employment, the vesting period is three years or 3,000 hours of service, whichever comes first.
Google, a leading American multinational technology giant and one of the best 401(k) match companies, offers both full and partial match options for employees. They provide either full dollar-for-dollar matched contributions with an upper limit of $3,000 or a 50% partial match of the employee’s contribution, whichever is greater. Google’s immediate vesting period allows you to benefit from their employer match contributions fully.
Honeywell International
Honeywell International, a well-known American publicly traded, multinational conglomerate corporation, offers a partial match of 87.5% to your 401(k) plan, up to 7% of compensation.
However, you must work at Honeywell International for three years before becoming eligible for employer match contributions. Once eligible, you have immediate vesting with added retirement benefits.
Adobe
Adobe, formerly known as Adobe Systems Incorporated, a prominent American multinational computer software company, requires at least 15 months of service before eligible employees can receive employer-match contributions.
After you complete their service period, you can receive a full match type with contributions of up to 6% of compensation. The vesting period is longer than most at two years, but you can benefit from Adobe’s generous matching program.
Netflix
A popular streaming service giant, Netflix offers a simple and appreciated structure for its 401(k) plan. They provide a full match type with contributions of up to 4%. There is no vesting period, and you are immediate eligibility for the 401(k) program.
Meta
With 2.96 billion monthly average users, Meta, formerly known as Facebook, is the largest social media platform in the world. The company is one of the best 401(k) match companies, providing a full match type with contributions of up to 50% of the IRS contribution limit for employees.
There is no eligibility requirement, and all employees qualify for the employer-matching 401(k) program immediately upon employment. Meta’s generous matching program and immediate vesting allow you to increase your retirement savings from day one and achieve your retirement goals.