It also has the advantage of discretionary funding, allowing you to change the contribution amount from year to year or even to skip years. Money purchase plans have stricter distribution guidelines than profit-sharing plans and higher contribution limits. And, unlike profit-sharing plans, the annual funding level for money purchase plans is fixed. For employer's contributions, see below. Funding is discretionary, but all eligible employees must receive the same percentage in any given year.
Funding is discretionary.
Funding amount is fixed. Schedule may be imposed. Schedule may be imposed. If you wish to pursue any of these options, you don't have to go it alone. Vanguard can provide information and IRS-approved documents to start your plan.