Employers who have a 401(k) account may contribute up to 10% of the fund’s value to help pay for health insurance and other expenses.
For example, an employer that provides health insurance coverage to its workers can contribute up 5% of a worker’s salary to a retirement account.
The average contribution for employers in 2016 was $5,200 per worker, according to a 2017 study by the American Association of Retired Persons.
But the average contribution from individuals was only $1,000, according the study.
The government has also allowed some employers to limit contributions to 10%, with the average limit being $2,000.