deferral limit definition
$2,500 $2,500 $2,500. Elective Deferral Limit: maximum contribution that can be made on a pre-tax basi s to a 401(k) or 403(b) plan (Internal Revenue Code sectoi n 402(g)(1)). 457 Deferral Limit: maximum deferral amount set by the IRS for certain government plans (457 plans).