Golden scale balancing employer contributions (labeled 'Employer') and employee contributions (labeled 'Employee').

Understanding Nonelective Contributions: What They Are and Their Advantages and Disadvantages for Employers

Introduction to Nonelective Contributions Nonelective contributions, also referred to as profit-sharing or employer discretionary contributions, are a type of employer contribution that differs from matching contributions in a significant way. In contrast to matching contributions, nonelective contributions come directly from the employer and aren’t based on an employee’s salary deferrals

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