Nonelective Contribution
A type of contribution an employer chooses to make to each of his or her eligible employee's employer-sponsored retirement plan. The contribution is not based on salary reduction contributions made by the employee.
Investopedia Commentary
Unlike a matching contribution, the employer makes a nonelective contribution regardless of whether or not the employee makes a salary reduction contribution to the plan.
Related Links
Plans the Small Employer Can Establish
Introductory Tour through Retirement Plans
See also: Active Participant Status, Defined Contribution Plan, Elective Deferral Contribution, Employee Contribution Plan, Matching Contribution, Pension Plan, Salary Reduction Contribution, Simple, Simplified Employee Pension
Also spelled: Non Elective Contribution