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

June 2, 2016

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

Your Guide


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

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules