# Elective deferral

> Elective deferral — 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.

Source: https://lopifi.com/glossary/elective-deferral
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- employer contribution
- match

- **Category:** Benefits
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** deferral, fica