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.
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Related terms: Catch-up contribution · Employer match
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