Elective-Deferral Contribution

A cash or deferred contribution arrangement of an employer-sponsored retirement plan under which participants can choose to set aside part of their pre-tax compensation as a contribution to the plan. Also known as "salary-deferral" or "salary-reduction contributions".


This kind of contribution is also called a salary reduction contribution. Employees defer the tax on the money until it is distributed to them.



Making Salary Deferral Contributions - Part 1 of 2 - If you aren't participating in your employer-sponsored retirement plan, you're missing out! Learn the benefits.

Making Salary Deferral Contributions - Part 2 of 2 - If you see barriers stopping you from participating in your employer-sponsored retirement plan, there may be some easy solutions.

Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it.
Related Terms

401(k)

Active Participant Status

Defined Contribution Plan

Employee Contribution Plan

Matching Contribution

Non-Elective Contribution

Pension Plan

Salary Reduction Contribution

Simple

Simplified Employee Pension

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