The employer match which is additional payment to your 457 account with your contributions. Employer matching is fixed on the basis of some certain portion of your annual payments which ranges from 0% to 100%.For example, we assume that the employers matching payment to the 457 account is 50% of the employee’s contributions. Employers’ such matching payment is limited up to 6% of employee’s salary. Let’s assume that the employee is paid $100,000 annually as salary and contributes 10% to the 457 account. So the possible results would be:
- $10,000 from employee
- $3,000 as the employer’s matching payment (which is 50% of $6,000 or 6% of the annual salary)
- Total: $13,000
To get a detailed idea about the maximum employer matching contributions, you can go through the concept of ‘Employer maximum’. It is very obvious to know that the maximum annual deferral allowed to an employee is not affected by the employer contributions.