As a result, you can offset future contributions with forfeited balances. A Money Purchase Pension plan works well for businesses with a clearly defined cash flow. It requires a set contribution rate that an employer selects at the time a plan is established. The employer must subsequently contribute this fixed percentage of each participant's compensation regardless of the level of profits. While Money Purchase Pension plans do not offer the flexibility of Profit Sharing plans, they allow for a greater deduction percentage-a very important consideration if your business has high tax liabilities.
Employees can withdraw from their account for special purposes.
Different vesting schedules are available. As a result, you can offset future contributions with forfeited balances. Paired Plans Employers who want to take advantage of the flexibility of a Profit Sharing plan, and the tax but also want to make larger deductible contributions can choose to set up Paired plans. This allows for a smaller commitment in lean years and maximum potential in good years. Value 20 Value 20 is a full service Pension and Benefits Plan for employers with fewer than 20 participants.