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February 19, 2009

Deferral election (Salary)



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  • Salary deferral contributions are usually made on a pre-tax basis and are taxed when withdrawn from the retirement account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

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Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

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IRA Rules