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| Definition | : | Cash or Deferred Arrangement |
| Category | : | Business » Finance |
| Country/ Region |
: | United States
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Acronym
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Cash or Deferred Arrangement (CODA) is an arrangement that permits an employee to defer a portion of his salary to a qualified plan or receive the salary as current taxable income.
CODA provides that an employee can elect to have part of his wages contributed to a retirement plan, instead of receiving the amount in cash. The amount contributed is not currently taxable if the CODA satisfies certain requirements of the Internal Revenue Code (IRS). The amount contributed is called an elective deferral. With rare exceptions, profit-sharing plans and stock bonus plans are the only types of qualified plans that are allowed to have a CODA.
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The full form of CODA is Cash or Deferred Arrangement
Cash or Deferred Arrangement | Certified Ohio Dental Assistant