[hartard]

Google matches the greater of something like 100% of $3000 - or - 50% of the max employee contribution.

A 100% match from Microsoft would mean an annual 2015 contribution of $36,000 ($18,000 employee + $18,000 employer match) versus $27,000 maximum ($18,000 employee + $9,000 employer match) from Google. That's a $9000 difference.

EDIT: Looks like the article is incorrect. Correct numbers are 50%, as stated in parent comment.

[jacalata]

They mean they are matching your entire contribution at 50%, not part of your contribution at 50%

[FatalErrorr]

You're wrong. MS does 50%.

[inspectahdeck]

Well, the article is wrong. Here's Microsoft's actual announcement:

https://blogs.microsoft.com/blog/2015/08/05/the-employee-exp...

[hartard]

You are correct. The article incorrectly quoted the source:

"we’ll increase the company’s 401(k) match from 50 percent of the first 6 percent that employees defer, to 50 percent of all regular deferrals. With the current IRS regular deferral limit of $18,000, this means employees will have the opportunity for Microsoft to match their contributions up to $9,000 per year."

[rconti]

Nobody knows. Microsoft's own release makes no sense. You (and your employer, combined) cannot contribute more than $18,000 tax-free per year. It's either 100% match of $9,000 on your $9,000 to make $18,000, or it's 50% match of your $12,000 to make $18,000. It can't be both things that the press release says it is.

My best guess is that they meant to say they now match 100%, but we won't know for sure until they correct the press release.

[gamblor956]

Read the announcement. MS now does 100% matching.

[rconti]

That's not allowable under law. The max is $18k (unless you're subject to the catch-up provisions over age 50 or 55 or whatever it is).

[danhak]

You're incorrect. Employers are allowed to contribute to an employee's 401K plan up to a $53,000 combined limit. The $18K limit applies only to employee contributions.

[encoderer]

The employer match does not count towards the $18k limit.