Money Purchase Plan
  Available to — Employers that want to offer a tax-deferred retirement plan to employees and can commit to the same percentage of contributions each year.
  How it Works — Employer must contribute same percentage each year to eligible employees'  accounts. Contributions are mandatory and based on percentage of employee compensation.

Quick Links
  Retirement Plan
  Simple 401K Plan
  Traditional 401k Plan
  Safe Harbor 401K Plan
  Money Purchase Plan
  Profit Sharing Plan
  Request A Proposal
  FAQ
  Main Features — Plan design determined by employer. Generally, eligibility criteria include attainment of age 21 and 1 year of service. If the plan permits early withdrawals, a penalty of 10% on money withdrawn before age 59 ½ generally applies; for non-5% owners, required minimum distributions begin by the later of age 70 ½ or retirement. Investments and participation qualifications determined by employer with certain guidelines. IRS Form 5500 generally filed annually. Plan must pass non-discrimination tests each year. Employer contributions can be made up until Employer’s tax filing deadline (including extensions).
  Annual Contributions — Employer fixed contribution for each eligible employee - up to 25% of compensation. Maximum combined contributions (employee and employer to all defined contribution plans) to each employee account is the lesser of 100% of compensation or $40,000 (as indexed).
  Advantages:
  Valuable employee benefit.
  Contributions, plan expenses may be tax-deductible to employer.
  Account balance and any earnings grow tax-deferred until withdrawn.