Glossary
Elective deferral
Definition
An elective deferral is the part of salary an employee chooses to contribute to a 401(k), 403(b) or governmental 457(b) plan, pre-tax or Roth. The 2026 limit is $24,5002026 · IRS, with catch-ups for older workers.
How elective deferral works
The 401(k) and 403(b) limits are combined across plans for one person; the 457(b) limit is separate.
Employer matches don't count toward the elective deferral limit.
Why it matters to a firm
Setting deferral levels is the simplest recurring tax and savings advice a firm gives.
| 2026 figure | Source |
|---|---|
| 401(k)/403(b)/457(b) employee deferral limit: $24,500 | IRS |
Questions about elective deferral
What is the 2026 limit?
$24,5002026 · IRS.
Do Roth deferrals count?
Yes, toward the same limit.
Is the 457(b) limit separate?
Yes.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Related terms: Catch-up contribution · Employer match
Next entry
Put the definition next to the number
Calculators on your site explain their own terms, in any of six languages, before the client ever calls.
Firm and Network plans include a 14-day trial. Cancel before it ends and you pay nothing.