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Calculating 401(k) Matching Contribution Companios docide whether to institute matching contributions, Ones that offer matching contributions do so for numerous reasons, including recritment and retiention of the most quaified indviduals. Aso, companies choose the formulas for making contributions and seting maximum imits. Here are thme common epprosches for detormining matehing contritutions: Full match: The employer fily matches an employeo's contribution to the 401(K) plan account up to an arnount set by law. For illustratho purposes, an employee earnirg $50,000 annually contributes $2,000 to hec 401(k), Then, the corrparys matehing contribution equals $2,000. equaling $3,000 : (3 percent $100,000). The employer contributes the same anount. Another employee contributos 10 percent of his $100,000 pay equeling $10,000 : (10 percont $100,000). In this case, the compeny deposits $5,000 : (5 percent $100,000) because the plan speciles a 5 percent matching contribution maximam. Under the Nil malch approach, the empioyers contribution for (Round your answers to the newrest hundresits place) a) Aminda: 1 b) Shinc:s Calculating 401(k) Matching Contribution Companios docide whether to institute matching contributions, Ones that offer matching contributions do so for numerous reasons, including recritment and retiention of the most quaified indviduals. Aso, companies choose the formulas for making contributions and seting maximum imits. Here are thme common epprosches for detormining matehing contritutions: Full match: The employer fily matches an employeo's contribution to the 401(K) plan account up to an arnount set by law. For illustratho purposes, an employee earnirg $50,000 annually contributes $2,000 to hec 401(k), Then, the corrparys matehing contribution equals $2,000. equaling $3,000 : (3 percent $100,000). The employer contributes the same anount. Another employee contributos 10 percent of his $100,000 pay equeling $10,000 : (10 percont $100,000). In this case, the compeny deposits $5,000 : (5 percent $100,000) because the plan speciles a 5 percent matching contribution maximam. Under the Nil malch approach, the empioyers contribution for (Round your answers to the newrest hundresits place) a) Aminda: 1 b) Shinc:s