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DE 401A DOC Form

DE 401A DOC Form

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a 401a plan is a type of money purchase retirement plan set up by an employer just as in the more familiar 401k plan the employee employer or a combination of both make 401 a plan retirement contributions under a 401a plan employees either make set dollar amount contributions to the plan or pay an amount based on a percentage of their wages if the employer also contributes to the employee's account the plan will have a vesting schedule which spreads the ownership of the employer contributions over a number of years of service 401a plans have some unique characteristics that differ from 401k plans employers have much more control in managing a 401a in fact an employer can custom design a 401a for a specific employee and use it as an incentive to keep that employee at the organization this can't be done with a 401k typically the employer sets the contribution amount levels of the 401a plan in addition some 401a plan contributions are mandatory meaning the employee is required to contribu

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