Employer discretionary contribution

Employer discretionary contribution,

Definition of Employer discretionary contribution:

  1. An additional contribution made by an employer to an employees 401K plan. Employer discretionary contributions are made at the end of the plan year and may take the form of increased matching contributions or profit-sharing contributions. These employer contributions are considered a tax-deductible business expense and also grow on a tax-deferred basis.

Meaning of Employer discretionary contribution & Employer discretionary contribution Definition