We can also provide the same quality service and investment options for defined benefit plans and IRA rollovers. This plan is one of the most attractive benefits that you can offer your employees. Also, any elective contributions made by the employee are excluded from their gross income for the year in which they are made and are not subject to taxation until distributed. Under this type of arrangement, each eligible employee may elect to reduce current compensation or elect to forgo a salary increase and have these amounts contributed to the plan.
Contributions made by the employer to the plan at the employee's election are non-forfeitable.
Each participant receives the same contribution percentage allocated by the employer for the given year period. A money purchase pension plan is a defined contribution plan where the company's contributions are mandatory and are based on the participants' compensation. It allows employees to make elective contributions and requires employees to make matching or non-elective contributions. All rights reserved. View our Web Site Terms and Conditions and Privacy Policy .