There are several different types of Employer matching contribution. Your Plan may offer one of them. Some of these include a discretionary match, a safe harbor match, or an enhanced safe harbor match. Please check your Summary Plan Description for additional details on your Plan's matching contribution, such as the vesting schedule, allocation periods, and other details. 

1) Your Plan may offer a discretionary (i.e., optional) Employer matching contribution. As a discretionary contribution, your Employer may or may not elect to make the matching contribution during any given year and for subsequent years regardless if your own salary deferral contributions are made on a pre-tax or after-tax/Roth basis (as permitted by Plan provisions). Discretionary matching may be suspended or terminated at any time without prior notice. The formula utilized is also at the discretion of your Employer. Please consult your Employer to learn more about their future matching contribution intentions and formula.

2) Your Plan may offer a safe harbor matching contribution. The matching formula has a two tier calculation based on your own salary deferral contributions and eligible wages, regardless if your own salary deferral contributions are made on a pre-tax or after-tax/Roth basis (as permitted by Plan provisions). The formula is as follows: (tier 1) The Plan will match your contributions dollar for dollars for the first three percent of eligible wages contributed by you to your Plan account, then (tier 2), the Plan will match 50 cents on the dollar for the next two percent of eligible wages contributed by you to your Plan account. For example, eligible annual wages of $100,000 and contributions totaling $5,000 will yield a 100% match on the first $3,000 of contributions ($3,000 of matching dollars so far) followed by a 50% match on the next $2,000 of contributions (another $1,000 of matching dollars for a total of $4,000 in matching dollars). In other words, a five or more percent contribution to your Plan account will maximize your Plan's safe harbor matching contribution (which is capped at four percent of eligible wages).    

3) Your Plan may offer an enhanced safe harbor matching contribution. Again, the matching formula is based on your own salary deferral contributions and eligible wages. The enhanced safe harbor matching formula may vary. One common example is as follows: The Plan may match your salary deferral contributions dollar for dollar up to the first four percent of eligible wages. For example, eligible annual wages of $100,000 and contributions totaling $4,000 will yield a 100% match ($4,000 of matching dollars on $4,000 of contributions). In other words, a four or more percent contribution to your Plan account will maximize your Plan's matching contribution (which is capped at four percent of eligible wages).