Matching Contribution

As applied to a 401k, a given employee might contribute 3 grand a year from her salary; her generous-benefit-giving employer might make a matching contribution of 3 grand, so that she's putting away 6 grand a year for her retirement.

And note that, if she's getting $50k in salary, she might also cost $8k a year in healthcare benefits...and then, if the company is doing a matching contribution of $3k, it costs the company at least $61k to keep her gainfully employed. Those matching contribution costs ain't free to the company. Matching contributions are a lovely benefit, as both 3 grands are tax deferred to the retirement years of gray hair, loosening teeth, and backaches.