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."
	Investopedia explains 'Elective-Deferral Contribution' When making these contributions, employees defer the tax on the money until it is distributed to them.

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