Not a type of 401(k) contribution?

• A. 401(k) Elective deferral
• B. 401(k) Roth
• C. 401(k) Employer match
• D. 401(k) Bonus Contribution

Answer: (D)

Understanding 401(k) contribution types: employee elective deferrals, Roth contributions, and employer contributions (such as matches) are the standard categories. Elective deferrals are the money you choose to defer from your salary, usually on a pre-tax basis. Roth contributions are after-tax deferrals that grow tax-free and are withdrawn tax-free in qualifying distributions. Employer match is a contribution the employer makes, typically based on the employee’s own deferrals, to boost retirement savings.

A bonus contribution isn’t a recognized category of 401(k) contributions. A bonus is part of your compensation, and you may choose to defer part of a bonus into the 401(k), but there is no distinct “bonus contribution” type separate from the standard elective deferrals or employer contributions. That’s why the option describing a bonus contribution isn’t considered a true 401(k) contribution type.