Thrift plan

Thrift plan

A defined contribution plan in which an employee contributes, usually on a before-tax basis, toward the ultimate benefits that will be provided. The employer usually agrees to match all or a portion of the employee's contributions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Thrift Plan

A retirement account in which a worker and an employer each make contributions up to a certain limit throughout the working life of the employee, usually on a before-tax basis. Under a thrift plan, a worker places a portion of his/her pre-tax income into an account and allows it to be invested. Taxation is deferred until withdrawal from the account, generally after retirement. It is important to note, however, that unlike some retirement plans, the employer makes a defined contribution to the account as well. Thrift plans are employee benefits, and workers must have a sponsoring employer to take advantage of one. See also: 401(k).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The survey discovered that the typical baby boomer has only $10,000 in personal savings, and $25,000 in a retirement savings program or lax-deferred thrift plan. Gummere said, adding that these results indicate baby boomers should be investing more.
Among those, 76 percent have a savings and thrift plan, and 69 percent of workers with such a plan have a flat match structure.
The Thrift Plan's G fund and the option that invests in an index of small- and medium-sized companies bested more than 90 percent of similar funds.
Thrift Plan, and investigating and then deciding to unitize its company stock funds.
The Thrift Plan creates a third tier of benefits under FERS.
A savings plan (or "thrift plan") is a qualified defined contribution plan that is similar to a profit sharing plan, with features that provide for and encourage after-tax employee contributions to the plan.
The memo described it as an unsolicited e-mail with a link to a bogus Web site appearing to be the thrift plan's account-access site.
Named for the corresponding section of the Internal Revenue Code, 401(k) plans allow employees to have a portion of their pay contributed to either a thrift plan, a profit-sharing plan, a salary reduction plan, or to a "cafeteria" plan, which will be discussed later in this article.
The motion states that MassMutual has agreed to pay $30.9 million to former and current participants of the MassMutual Thrift Plan and the Massachusetts Mutual Life Insurance Co.