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Deferral election (Salary)

Last Updated March 20, 2009


A written election made by plan participants to make salary deferral contributions to an employer-sponsored plan that includes salary deferral-feature. Such plans include SARSEPs, 401(k) , 403(b) and SIMPLE IRA plans.

Referring Cite

IRC § 401(k) plan, IRC § 408(p), IRC § 408(k)


Additional Helpful Information

  • Salary deferral contributions are usually made on a pre-tax basis and are taxed when withdrawn from the retirement account
  • Salary deferrals to 401(k) plans are subject to nondiscrimination testing