Elective deferral
In accounting, elective deferral means the part of pay an employee chooses to put into a 401(k), 403(b) or SIMPLE plan instead of taking it as cash. Traditional deferrals are out of income-tax wages but stay in FICA wages.
Authority: Notice 2025-67 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- employer contribution
- match
Components that render the terms it depends on
No component names this concept outright, but it's built from terms that components do name. These render deferral.
Also in Benefits
Defined in Lexicon. This page is generated from that document, so the two can't disagree.