Nonelective Contribution

What Does Nonelective Contribution Mean?
A type of contribution an employer chooses to make to each of his or her eligible employee's employer-sponsored retirement plan. The contribution is not based on salary reduction contributions made by the employee.

Investopedia explains Nonelective Contribution
Unlike a matching contribution, the employer makes a nonelective contribution regardless of whether or not the employee makes a salary reduction contribution to the plan.

Related Terms

Active Participant Status
Defined Contribution Plan
Elective Deferral Contribution
Employee Contribution Plan
Matching Contribution
Pension Plan
Salary Reduction Contribution
Simple
Simplified Employee Pension
More Related Terms

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