Money-Purchase Pension Plan

(redirected from Money Purchase Pension Plans)

Money-Purchase Pension Plan

A defined contribution pension in which an employer must contribute an amount equal to a certain percentage of the employee's compensation, usually 25%. While the amount of employer contribution is fixed, the amount of benefit is not. There are also penalties associated with receiving payments from the pension before retirement. These contributions are tax-deductible for the employer and guarantee the employee a certain amount of principal in the pension plan.
References in periodicals archive ?
Ivy also offers an R-share class in selected funds, providing more flexibility and choice to smaller companies that offer employer-sponsored retirement plans, including 401(k), profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans.
Under EGTRRA, profit-sharing plan contributions after 2001 are subject to the same employer deduction limit of 25 percent as money purchase pension plans, but are more flexible; since the contributions are discretionary from year to year, whereas money purchase pension plans require annual contributions defined by formula.
In a change designed to increase employee flexibility, the act permits defined benefit and money purchase pension plans to make distributions to active employees who have reached age 62.
The survey summarizes the most popular components of investment policy statements for defined benefit plans, 401(k) plans, money purchase pension plans, 403(b) plans, and welfare plans.
Participants in Hanover's The Company Store Savings and Money Purchase Pension plans and the Retirement Plan for Union Employees are prohibited from purchasing the stock pending completion of the company's investigation of accounting matters.
Employee benefit plans that are subject to ERISA's fiduciary rules include group health plans and tax-qualified retirement plans, such as 401(k) plans, money purchase pension plans, defined benefit pension plans, and Internal Revenue Code Section 403(b) tax-sheltered annuities that are maintained or sponsored by a nongovernmental entity.
38% of the plans are money purchase pension plans - under this format they have limited in-service distributions and cannot allow hardship withdrawals.
The addition of health savings accounts enables Pershing to offer its customers a new investor-focused retirement account planning opportunity and enhances its extensive suite of retirement products and services which include traditional, Roth and SIMPLE IRAs, education savings accounts, simplified employee pension plans, profit sharing plans, money purchase pension plans, as well as 401(k) and individual (k) plans and 403(b)(7) custodial accounts.
Profit-sharing and money purchase pension plans provide employers with an opportunity to make tax-deductible contributions to their employees' accounts.
Its product offerings include retirement plans (401(k), profit sharing or money purchase pension plans, and defined benefit), institutional trust and custody, master trust services and health savings accounts.
With total defined contribution assets under management of approximately $39 billion (as of June 30, 2003), it administers 14,000 defined contribution plans including 401(k), 403(b), Profit Sharing, Money Purchase Pension plans and more.
Its product offerings include retirement plans (401(k), profit sharing or money purchase pension plans and defined benefit), institutional trust and custody, master trust services and health savings accounts.