Company match

[csanch11]

Attached is a screen shot of the details on how Costco matches employee contributions on their 401(k). I'm not too sure if I understand it. 

My Assumption: Costco will match 50% of your contributions. So if you contribute $42/month, then their match would be $21/month?

Is my assumption correct? 

[Lou S.]

It seems you have it correct, $42 per month is is $504, since that is under the stated limit of $1,000 you should receive an annual match of $252.

It does not say if the match is calculated and deposited each payroll or at the end of the year in a single deposit.

On the other hand if you were contributing $420 per month that would be $5,040 for the year. Since that exceeds the maximum $1,000 that is matched the annual match would be capped at $500.

In addition it appears that an annual contribution is made that varies based on pay and years of service with the company.

This is only a brief summary and the legal plan document and summary plan description might contain additional information that could effect eligibility and amounts.