Elective-Deferral Contribution


DEFINITION of 'Elective-Deferral Contribution'

A contribution arrangement of an employer-sponsored retirement plan under which participants can choose to set aside part of their pretax compensation as a contribution to the plan.

Also known as "salary-deferral" or "salary-reduction contributions."

BREAKING DOWN 'Elective-Deferral Contribution'

When making these contributions, employees defer the tax on the money until it is distributed to them.

  1. Active Participant Status

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  2. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  3. Nonelective Contribution

    A type of contribution an employer chooses to make to each of ...
  4. Annual Addition

    The total dollar amount contributed in a given year to a participant's ...
  5. Employee Contribution Plan

    A company-sponsored retirement plan where employees may elect ...
  6. Matching Contribution

    A type of contribution an employer chooses to make to his or ...
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  1. Who offers 401(k) plans?

    401(k) plans are one of the most common retirement plans available. A 401(k) plan must be offered by a business. These plans ... Read Full Answer >>
  2. Are Flexible Spending Account (FSA) contributions tax deductible?

    The contributions you make to your Flexible Spending Account (FSA) are not tax-deductible because the accounts are funded ... Read Full Answer >>
  3. I work for two companies. How much can I contribute to each company's SIMPLE IRA?

    It depends. If you work for two companies that are unrelated and unaffiliated, you can make salary deferral contributions ... Read Full Answer >>
  4. Can I contribute to my company-sponsored 401(k) after the company's year-end but ...

    Unlike IRAs, where contributions can be made for the previous year up to April 15 of the current year, salary deferral contributions ... Read Full Answer >>
  5. I have a KSOP through my employer that I've invested 100% in company stock. I am ...

    In order to be sure of your options, it's best to check the summary plan description (SPD) for the plan. The options may ... Read Full Answer >>
  6. I have several jobs. Can I contribute the maximum to multiple employer retirement ...

    It depends. A question such as this requires detailed information in order to provide a helpful response. Here is a general ... Read Full Answer >>
  7. Where can I find information on multiple annual additions for someone employed by ...

    That information can be found in Internal Revenue Code Section 402(g). Also see IRS Publication 571. If an individual participates ... Read Full Answer >>

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