Elective-Deferral Contribution

What does it Mean? 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".
Investopedia Says... When making these contributions, employees defer the tax on the money until it is distributed to them.

Terms Related Links

401(k) Plan
Active Participant Status
Defined Contribution Plan
Employee Contribution Plan
Matching Contribution
Non-Elective Contribution
Pension Plan
Salary Reduction Contribution
Savings Incentive Match Plan for Employees of Small Employers - SIMPLE
Simplified Employee Pension - SEP

Terms Related Links
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Can I contribute to my company-sponsored 401(k) after the company's year-end?

Can I contribute the maximum to multiple employer retirement plans?

Where can I find information on multiple annual additions?

I am 100% invested in company stock. Can I use these funds to diversify?

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