Not all 401(k) plans are created equal: Costco is among the most generous companies, but others also go above and beyond — does your company rate?

Imagine ending up with over $1 million in your retirement account without putting any money into it yourself.

This seems impossible for most people, but it is a potential reality for some Costco employees. That’s because Costco has a very generous 401(k) plan. In fact, the Wall Street Journal recently described it as one of the best in the country.

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And Costco isn’t the only company offering great retirement benefits. Others also offer top-notch plans, likely because they realize doing so helps both them and their employees. “A competitive 401(k) plan can be a powerful tool for attracting talent and part of the broader talent strategy supporting retention,” Christine Roach, HR consulting team lead at VCFO told Moneywise. “It seems like today’s employees are looking beyond salary at their total rewards. And a strong retirement offering is definitely key in the mix.”

So, how does your plan compare to Costco’s? Let’s take a look at what the big box store is offering, as well as how 401(k) matching works at some other generous businesses.

Costco’s retirement plan is one of the best

Costco offers a traditional 401(k), which allows both employers and employees to make pre-tax contributions. You’re eligible to sign up for it after you’ve been an employee for at least 90 days, as long as you’re 18 or over.

Costco stands apart from most other companies offering a 401(k), though, because it is much more generous than most.

Specifically, Costco matches 50% of your contributions up to an annual $500 maximum. More importantly, it also contributes to your plan even if you do nothing at all.

After a year of service, it will make a contribution equal to 4% of your salary. And the amount progressively increases until, after 25 years or more, it invests 9% of your salary for you. These types of contributions (where you don’t have to invest to earn) are called employer discretionary or non-elective contributions. And, in Costco’s case, those contributions vest immediately, so they are yours to keep even if your employment changes.

Considering the fact that Vanguard reported 401(k) matches have generally risen to a record of 4.7%, Costco’s plan is better than the average. This is likely a part of Costco’s broader strategy to keep employee turnover low by offering generous benefits.

“Replacing an employee typically costs a company six to nine months of that employee’s salary, once you account for hiring, onboarding, and lost productivity,” Guillermo Triana, an HR consultant and founder of PEO-Marketplace.com told Moneywise. “A stronger match is cheap insurance against that cost.”

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Is your company on the list of generous 401(k) providers?

Costco’s plan is great for those who work there, but what about everyone who doesn’t?

Fortunately, there are plenty of other companies that are making a meaningful impact on helping their staff save for the future. In fact, Carry recently published a report of the top 50 companies with the best 401(k) matches in 2026.

Several businesses, including Dollar General, provide a full match of up to 25% of compensation. This comes with immediate eligibility and immediate vesting. And others, like Visa and USAA offer a 200% matching contribution capped at 10% and 4% of your salary, respectively. They’ll put in more than you contribute if you choose to invest.

If you’re not sure how your company’s 401(k) stacks up, speak with your plan administrator and review your paperwork to see what the terms are. Things to look for include:

• Non-elective contributions: If your employer contributes even if you don’t, that’s a good sign that the plan is fairly generous.

• A large percentage match. For example, you ideally want your company to match at least 100% of the amount you put in. A company that offers a 200% match gives you $2 for every $1, while a company offering a 50% match gives you $0.50 on the dollar. This makes a huge difference over time.

• A large maximum match. Some employers limit the amount of the match to a certain percent of your salary. For example, if your employer caps contributions at 4% of your salary and you make $100,000 and contribute $20,000, the matching funds you could collect would be limited to 4% of $100,000, or $4,000. But if your employer had an unlimited match, the company could put in $20,000 to match 100% of your contributions.

• Immediate vesting. Vesting means the money fully belongs to you even if you leave the company. Your own contributions always vest immediately, but your employer’s contributions sometimes don’t. Look for immediate vesting so your ability to keep your employer’s 401(k) contributions doesn’t hinge on staying at your job for years.

If your company isn’t generous, see if you can talk with them about improving their plan — or consider looking for opportunities at a company like Costco that’s shown a commitment to helping staff build a secure future.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.