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Glossary of Common Retirement Planning Terms

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Employer Matching Contribution

The amount that an employer may contribute to its employee’s retirement fund. This amount is usually represented as a formula based on the employee’s contributions.

Employer-Sponsored Retirement Plan

An employer-sponsored retirement plan is a tax-deferred retirement plan employers offer their employees as a way to save for retirement and lower their taxable income. Common employer-sponsored retirement plans are 401(k) plans, 403(b) plans, and simplified employee pension plans.
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