Nonelective Contribution

Dictionary Says

Definition of 'Nonelective Contribution'


A type of contribution an employer chooses to make to each of his or her eligible employee's employer-sponsored retirement plan. The contribution is not based on salary reduction contributions made by the employee.

Investopedia Says

Investopedia explains 'Nonelective Contribution'


Unlike a matching contribution, the employer makes a nonelective contribution regardless of whether or not the employee makes a salary reduction contribution to the plan.

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