Definition
Elective deferral contributions, also known as salary deferral contributions made to SIMPLE IRAs, 401(k) plans, SARSEPs, 403(b) plans . A participant may defer up to 100% of his/her salary/wages to the plan, up to the statutory dollar limit in effect for the year. For qualified plans and 403(b) plans, the employer may limit salary reduction contributions to a percentage less than 100% of salary/wages, if permitted. Different limits apply to different types of plans.
The dollar limits from 2014 are as follows:
| 401(k) and 403(b) | ||
| Year | Salary deferral/Reduction limit | Catch-up contribution limit |
| 2015 | $18,000 | $6,000 |
| 2016 | $18,000 | $6,000 |
| 2017 | $18,000 | $6,000 |
| 2018 | $18,500 | $6,000 |
| 2019 | $19,000 | $6,000 |
| 2020 | $19,500 | $6,500 |
| 2021 | $19,500 | $6,500 |
| 2022 | $20,500 | $6,500 |
| 2023 | $22,500 | $7,500 |
| Year | SIMPLE IRA and SIMPLE 401(k) | |
| Salary Deferral contribution limit | Catch-up contribution limit | |
| 2015 | $12,500 | $6,000 |
| 2016 | $12,500 | $6,000 |
| 2017 | $12,500 | $6,000 |
| 2018 | $12,500 | $6,000 |
| 2019 | $13,000 | $6,000 |
| 2020 | $13,500 | $6,500 |
| 2021 | $13,500 | $6,500 |
| 2022 | $14,000 | $6,500 |
| 2023 | $15,500 | $7,500 |
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Referring Cite
IRC §402(g), Treas. Reg. § 1.402(g)-1(b); Prop. Treas. Reg. § 1.402(g)-1(b)(5) and (6)
Additional Helpful Information
- Salary reduction contributions made to a Section 457 plan are not treated as an elective deferral contribution
- If an individual participates in multiple employer sponsored plans with salary reduction feature, the aggregate salary deferral contribution cannot exceed the dollar limit in effect for the year.
