Elective-Deferral Contribution

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Dictionary Says

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 Says

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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  1. 3 Common Excuses For Not Contributing To A Retirement Plan

    If you're not participating in your employer-sponsored retirement plan, there may be some easy solutions.
  2. I have several jobs. Can I contribute the maximum to multiple employer retirement plans?

    It depends. A question such as this requires detailed information in order to provide a helpful response. Here is a general response that may be of help. Questions: Are any of these companies ...
  3. Can I contribute to my company-sponsored 401(k) after the company's year-end but before its tax-filing date?

    Unlike IRAs, where contributions can be made for the previous year up to April 15 of the current year, salary deferral contributions generally apply to they year in which they are actually withheld ...
  4. Where can I find information on multiple annual additions for someone employed by more than one unaffiliated company?

    That information can be found in Internal Revenue Code Section 402(g). Also see IRS Publication 571.If an individual participates in multiple retirement plans, the aggregate salary deferral among ...
  5. I have a KSOP through my employer that I've invested 100% in company stock. I am now concerned that I'm not diversified and would like to move out of company stock and into mutual funds. Is this allowed with the funds I've contributed to the account?

    In order to be sure of your options, it's best to check the summary plan description (SPD) for the plan. The options may vary for different plans. This should include an explanation of the rules, ...
  6. 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 of up to $20,500 between the two plans with no more than $13,000 going ...
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