401k Deferral: Understanding Contribution Choices and Limits
When it comes to planning for retirement, understanding your 401k deferral options is crucial. An elective-deferral contribution is a portion of an employee’s salary that is withheld and transferred into a retirement plan such as a 401(k) or 403(b). These contributions can be made on a pre-tax or after-tax basis, depending on employer allowances. Contributing…