401(k) elective deferral
Certified Financial Planner glossary · Certified Financial Planner
Definition
Employee pre-tax or Roth contribution to a 401(k), subject to the annual elective deferral limit and any catch-up.
401(k) elective deferral in plain English
An employee asks how much salary can go into the 401(k) this year before hitting the employee contribution ceiling. A 401(k) elective deferral is the employee pre-tax or Roth contribution to a 401(k), subject to the annual elective deferral limit and any catch-up. Employer matches and profit sharing sit in separate limit buckets. For 2026 planning, watch stale 23,000 figures; current elective deferral teaching uses 24,500 plus applicable catch-ups.
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