Definitions for "Cash or Deferred Arrangement"
A qualified plan, usually part of a profit sharing or stock bonus plan, that gives an employee the option to contribute some of his/her salary to the plan. One example is a 401(k) plan. A participant in a CODA may still contribute to an IRA, although the contribution might not be deductible.
An arrangement under a retirement plan that allows employees to either receive cash or have the employer contribute an equivalent amount to the plan.
See Section 401(k) plan.----------[ Back