what is an elective deferral limit 
an elective deferral is money that your employer contributes to your retirement plan your employer is effectively giving you this money but it s not included in your taxable income the irs therefore sets limits as to how much you can receive usually toward 401 k 403 b sarsep and or simple ira plans the 2023 elective deferral limit for these plans is 22 500 this increases to 23 000 in 2024 anything in excess of these amounts is included in your taxable income for that year the limit increases by 7 500 if you re age 50 or older 6