You are absolutely right. Your employer may choose to match your contribution, but it is entirely up to your employer. 401(k) was invented to shift the burden of saving for retirement from the employers to employees. So if your employer matches your contribution, it is great, and you should take the whole advantage of it, since it is like free money, if he doesn't, you still have your tax benefits, while saving for your retirement.

Hope it helps, thanks for the question.

No, it's entirely the employer's decision whether to match employees' 401(k) contributions and whether to even offer a plan at all. Matching contributions is a nice benefit which most good companies offer, but it's not required to have a plan.

A 401k plan doesn't necessarily mean that the employer has to match the investment that you make each year. A 401k plan is a retirement plan which you are the sole contributor and other entities have the option of contributing to your plan. Some company's will offer a 50% or 100% match of any 401k contribution you make, but not all employers will offer this as it's not required.

No, it's not mandatory that employers match a certain percentage of your dollars, or offer you a plan at all. The 401k is for your benefit. However, it's common for many companies to give you some kind of match, since the plan is intended to help you save for retirement.

The relative cheapness and popularity of 401ks over pensions in today's business world means that they are already saving money. The company fronts part of the cost for setting up and maintaining a plan with the administrator. Businesses may differ widely in the match they provide to their employees. Most companies will match up to several percent that you put into the account from your own check. Others will give you a small percentage of your annual earnings deposited into the account once per year.

If you have an employer who matches, it's wise to try to contribute at least up to the match. This is essentially free money you would leave on the table if you don't. Moreover, planning for retirement sooner rather than later is a good way to get yourself on a stable path to the future.

It is not required for your employer to match funds in your 401k. It is very nice if they do but there is no legal reuirement for an employer to do so. The amounts employers match will vary by company as well. I have worked for companies that match and ones that do not match. The main advantage of a 401k plan is that you can put away pre-tax dollars from your paycheck. It also allows you to pay yourself first so that you don't really notice the money being saved. The amount you can contribute to a 401k is higher than that of an IRA which makes it a better investment tool for retirement. Even if your employer does not match funds in your 401k plan you should still take advantage of it. Everyone needs to save for retirement and a 401k plan is one of the best vehicles to do so.

No. An employer has no obligation to match your contributions or add and finds to your 401k at all. Many small businesses or start up companies that offer 401k plans do not offer matching contributions. This does not make the program "bad", matching or not it is still a good way to reduce your tax burden now and let your investment grow tax free.