401k — Payroll Definition

What is 401(k) Contribution?

A 401(k) is an employer-sponsored retirement plan. Traditional elective deferrals generally reduce current federal taxable income, while designated Roth contributions are generally made after tax. The 2026 employee elective-deferral limit is $24,500. If the plan permits catch-up contributions, the general age-50-or-older limit is an additional $8,000; a higher $11,250 catch-up applies for participants ages 60 through 63. Employer contributions, plan terms, and the separate overall contribution limit also matter.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

Browse all payroll definitions or use the pay-statement codes guide.