You may set up a discretionary match to your employee's elective deferrals (401(k) and Roth). The match formula is determined by
your company. An example of a match formula would be to match 100% on the first 3% of compensation deferred into the plan. Matching contributions
provide incentive for employees to save for their own retirement.
Your company's match may be set up to be either fully vested immediately or subject to a 6-year vesting schedule in which an employee is 0% vested in the match portion
of their account their first year, 20% with two years of service, and an additional 20% each year following. Vesting schedules attract and retain more stable employees
by rewarding them with additional vested benefits for years of service (up to six).