401(a)

In the United States, a 401(a) plan is a tax-deferred retirement savings plan defined by subsection 401(a) of the Internal Revenue Code.^[1] The 401(a) plan is established by an employer, and allows for contributions by the employer or both employer and employee.^[2] Contribution amounts, whether dollar-based or percentage-based, eligibility, and vesting schedule are all determined by the sponsoring employer.^[3]

These plans are available to some employees of the government, educational institutions, and non-profits, and their funds can be rolled over to a different qualified retirement plan, such as a 401(k)^[4] or IRA,^[5] when changing jobs. Employer contributions are mandatory, while employees are not necessarily required to contribute to the plan.^[6] Early withdrawals from the plan are permitted, but they may be subject to a penalty.^[7]

See also[]

• 401(k)
• 403(b)
• 457(b) and 457(f) plans
• Individual retirement account
• List of finance topics
• Taxation in the United States
• Thrift Savings Plan

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