This type of plan is generally used by companies willing to commit to a fixed annual contribution expense, as it requires employers to make standardized contributions regardless of profit. Money Purchase Characteristics 1. All types of employers, including self-employed individuals.
Contributions are a fixed percentage of employee compensation.
By tax filing deadline date, plus extensions. Employers can choose to be less restrictive. If eligibility requirement is 1 year or less, vesting schedules may be used. Yes, plan can permit loans. Completion of plan document and trust agreement by employer.