Other Plans

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Other Defined Contribution Plans

Money Purchase Pension Plan

  • Defined contribution
  • Individual participant accounts
  • Employer typically contributes a set percentage of salary
  • Employees may contribute (after-tax)
  • Pre-tax employee contributions possible for public sector employees
  • Retirement benefits determined by accumulated contributions and earnings
  • Contributions may be offset by social security taxes
  • Forfeitures used to reduce employer contributions
  • Favorable to short-term and younger employees
  • Nondiscrimination rules generally apply to private sector employers
  • Same benefit distribution rules as defined benefit plans
  • Assets held in tax-exempt trust and invested in stocks, bonds and short-term cash management
  • Employees bears investment risk

Profit Sharing Plan

  • Defined contribution
  • Individual participant accounts
  • Employer contributes discretionary amounts
  • Contributions may be off-set by social security taxes
  • Forfeitures usually shared among participants
  • Participant loans may be allowed
  • Favorable to short-term and younger employees
  • Non discrimination rules generally apply to private sector employers
  • Flexible withdrawal and distribution provisions permissible
  • Assets held in tax-exempt trust and invested in stocks, bonds and short-term cash management
  • Employees bear investment risk

401(K) Plans

Defined Contribution Plan

  • Generally partnerships and for-profit companies
  • Employees may elect to contribute by payroll deduction on a pre-tax basis or after-tax basis
  • Employer may match employee contributions
  • Employees bear investment risk
  • Investment options are selected by THA Retirement Plan Board of Trustees
  • Employees select investment choices from available investment options
  • Assets held in a custodial account with Charles Schwab Bank
  • Compliance and Discrimination testing performed by third-party administrator hired by THARP Board of Trustees
  • Loans may be available
  • Financial hardship withdrawals permitted

403(B) Plans

Tax Savings Arrangements

  • Restricted to organization exempt under IRC Section 501(c)(3) and public school employees
  • Employees contribute by payroll deduction on a pre-tax basis or after-tax basis
  • Employer may match employee contributions
  • Financial hardship withdrawals permitted
  • Investment of assets directed by employee
  • Employees bear investment risk
  • Assets held in custodial account with Charles Schwab Bank
  • Mutual fund options selected by the THA Retirement Plan Board of Trustees

457 Plans

Deferred Compensation Plan

  • Generally restricted for employees of a state, county and hospital districts, its political subdivisions, agencies or instrumentalities and certain tax-exempt organizations
  • Employees may elect to contribute by payroll deduction on a pre-tax basis or after-tax basis
  • Assets are held in a tax-exempt trust by Charles Schwab Bank
  • Withdrawals allowed in event of an unforeseeable emergency
  • Employees bear investment risk
  • Employer may match employee contributions but not required
  • Investment options are selected by THA Retirement Plan Board of Trustees

Contact:

Lea Anne Porter, vice president, retirement plans, 512/465-1544