Save time with our cheat sheets, fact sheets, checklists & books!

June 2, 2016

What is a 401(a) Plan? Find out here!


What is a 401(a) Plan?

A 401(a) plan is a qualified retirement plan.

The term “401(a) plan” is often used because that is the section of the Internal Revenue Code (IRC) under which the governing rules for qualified retirement plans are found. ( IRC Section 401(a), or IRC § 401(a). )

The following are qualified retirement plans:

Referring Cite

IRC § 401(a), IRS Publication 560

Additional Helpful Information

A profit sharing plan can include a salary deferral feature, which is also known as a ‘qualified cash or deferred arrangement’. The salary deferral feature is referred to as a 401(k) plan, because it is governed under Section 401(k) of the IRC.

A 401(k) salary deferral feature can also be included in a a stock bonus plan, a pre-ERISA money purchase plan, or a rural cooperative plan.


Keep Learning

Applicable RMD Age

Applicable RMD Age The first year for which an IRA owner or plan participant must begin to take RMDs from their tax-deferred retirement account. RMDs

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Required Minimum Distribution (RMD)

Definition The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year.  For retirement account

Required beginning date (RBD)

Definition The date by which a retirement account owner must begin distributing required minimum distribution (RMD) amounts from a Traditional,  SEP or SIMPLE IRA, a

Be among the first to know when

IRA Rules