{"id":110511,"date":"2023-10-03T22:48:25","date_gmt":"2023-10-03T22:48:25","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/what-does-deferral-mean-in-the-context-of-a-401k-plan\/"},"modified":"2023-10-03T22:48:25","modified_gmt":"2023-10-03T22:48:25","slug":"what-does-deferral-mean-in-the-context-of-a-401k-plan","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/what-does-deferral-mean-in-the-context-of-a-401k-plan\/","title":{"rendered":"What does deferral mean in the context of a 401k plan?"},"content":{"rendered":"

What does deferral mean in the context of a 401k plan?<\/p>\n

A 401k plan is a popular retirement savings vehicle offered by employers, providing employees with the opportunity to save and invest for their retirement years. One key term to understand in relation to 401k plans is “deferral.” Essentially, deferral refers to the portion of an employee’s salary that they choose to contribute to their 401k account. This deferral is deducted from the employee’s paycheck before taxes are applied, allowing for potential tax advantages. Let’s explore this concept further and address some common questions related to deferral in 401k plans.<\/p>\n

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