Not all employers make 401(k) matching contributions, and those who do may contribute at different levels. A typical 401(k) match might be 25 to 50 percent of your own contribution up to a certain level. Your own contributions to your 401(k) plan are automatically yours to keep, but you may have to be "vested" before you are entitled to your employer’s 401(k) matching contributions. This means having a certain level of service with your company, for example three years. Some plans have graduated scales for vesting. For example, you may be 50 percent vested after two years and 100 percent vested after three years. With other plans, you may be entitled to receive your employer’s 401(k) matching contributions immediately, without waiting to be vested.

Usually you are eligible to join a 401(k) plan if you:

• Are an eligible employee of a company that offers such a plan.
• Are over the age of 21.
• Have worked for the company for a specified length of time (not to exceed 1 year).

For full information on 401(k) matching and the rules governing your employer’s 401(k) plan, ask your plan administrator or human resource representative for a Summary Plan Description (SPD).