Elective deferrals by employers are called matching contributions because the employer matches a certain amount per dollar contributed by the employee.
Not exact matches
By comparison, SEP accounts don't allow for employee
elective deferrals and catch - up contributions, but they do allow for total annual contributions of $ 54,000.
A SIMPLE IRA lets companies that have 100 or fewer employees offer a tax - advantaged retirement plan, funded
by employer contributions and
elective employee salary
deferrals.
These limits apply to the total of all
elective deferrals (including both pre-tax contributions and after - tax Roth contributions) that an employee makes during the year to any 401k plan, 403b plan, SAR - SEP, or SIMPLE plan, whether or not sponsored
by the same employer.
Technically, an employee makes a Roth 401k contribution
by making an
elective deferral under the 401k plan, irrevocably designating all or part of that
deferral as a Roth 401k contribution.
If allowed
by their particular 401k plan, participants who turn 50 before the end of the calendar year can also contribute an additional $ 6,000 to the plan, via catch - up contributions, for a total of $ 24,000 in
elective deferrals.