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Employee Benefits > Nonelective Contribution Or Employer Nonelective Contribution
The following information is about Nonelective Contribution Or Employer Nonelective Contribution.
Nonelective Contribution Or Employer Nonelective Contribution Defined
Often used to describe contributions made by an employer which are not subject to a cash or deferred election under a 401(k) plan. Nonelective contributions can include regular profit sharing contributions, matching contributions and certain “fail safe” contributions made by an employer to ensure that the plan will satisfy various nondiscrimination tests.
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