What does the "Employer Match" refer to in 401(k) plans?

The term "Employer Match" in the context of 401(k) plans specifically refers to the contributions made by an employer that are contingent upon the contributions an employee makes to their individual retirement account. This matching contribution is typically a percentage of the employee's contribution, up to a certain limit, and serves as an incentive for employees to save for retirement.

By matching employee contributions, employers not only help their employees increase their retirement savings but also promote greater participation in the 401(k) plan. For instance, an employer might match 50% of employee contributions up to a specific percentage of salary. This can significantly enhance the total amount saved for retirement.

The other options do not accurately define the concept of an Employer Match. Only the employer's contributions based on what employees choose to contribute themselves characterizes the matching aspect of a 401(k) plan.