Elective-Deferral Contribution
A 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". Investopedia Says:
When making these contributions, employees defer the tax on the money until it is distributed to them. Related Terms:
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 |