Voluntary Deferral Plan(redirected from Voluntary Deferral Plans)
Voluntary Deferral Plan
An employee retirement plan in which an employee may elect to place a portion of his/her wages or salary into an account. The money in this account is invested and distributed following retirement and the employee does not have to pay tax on this income until retirement. What distinguishes a voluntary deferral plan is the fact that it is not governed by the Employment Retirement Income Security Act. For that reason, the employer may choose which employees can participate in the voluntary deferral plan.