401(k) Thrift Plan
401(k) plan

The 401(k) is one of the most popular forms of defined contribution plans and has been widely adopted as a retirement plan for American workers. A 401(k) plan is a valuable tool for attracting and retaining top talent.


A plan participant's contributions are made through payroll deductions that are allocated to an account established for the plan participant.

Often, but not always, the plan sponsor will contribute a base and/or matching amount up to a certain percentage as an employee benefit to help encourage employees to take advantage of this savings vehicle. Employers may also choose
to add a Designated Roth Contribution Feature to their
401(k) plan.

We also offer a new comparability feature that provides nonuniform allocation of the employer contribution. This allows targeted groups of employees (e.g., the owners of the business) to receive a larger share of the total employer base contribution.


We provide outstanding administrative services for plan sponsors, based on the service level they choose, which include:

  • Plan document, amendments, restatements and Summary Plan Description booklets/Highlight booklets (depending on the service arrangement that you choose)
  • Recordkeeping and other administrative services
  • Investment related services (subject to plan fiduciary oversight)
  • Employee education, communication and enrollment
  • Benefit estimates upon request
  • Processing claims for benefits and disbursement of benefit payments

For a complete list of services provided, please contact your local Mutual of America Regional Office.

Advantages for Plan Sponsors
  • Funded in part from dollars paid as salary.
  • Deduct your employer-matched and nonelective contributions from taxes, if applicable, as a business expense.
  • Helps recruit and keep quality employees.
  • Helps your employees build retirement security.
Advantages for Employees
  • Save through easy payroll deduction.
  • Choose the amount they want to save, subject to applicable IRS limits.
  • Change the amount saved to meet current needs.
  • Reduce their taxable income.
  • Defer taxes on the amount saved and its earnings until the participant receives benefits from the
    retirement plan.
Designated 401(k) Roth Contribution Feature
  • Enhances your employees' retirement planning choices by providing them with an additional option to make Designated Roth Contributions on an after-tax basis under your retirement plan.
  • Provides your employees with an opportunity to receive federal-income-tax-free distributions, including investment earnings from your retirement plan, if qualified distributions are made. Designated Roth Contributions and investment earnings on them received after a five-taxable-year period that begins on January 1 of the year in which the initial Designated Roth Contribution is made under a plan, provided that:
  • The employee is age 59½ or older, or
  • The employee has become disabled or has died.

A distribution from a Designated Roth account and investment earnings on such amounts that does not meet the above requirements for a qualified distribution is income taxable as ordinary income to the extent attributable to investment earnings on Designated Roth Contributions. Such investment earnings may also be subject to a 10% premature distribution federal income tax penalty. Please note, however, that Designated Roth Contributions are withdrawn on a pro rata basis.

As noted earlier, qualified distributions from Designated Roth 401(k) and Roth 403(b) accounts are not subject to federal income tax.

New Comparability Feature

These plans feature a nonuniform allocation of the employer base contribution, which allows targeted groups of employees (e.g., the owners of the business) to receive a larger share of the total employer contribution. They are often designed to allow business owners to receive the maximum contribution permitted in a profit-sharing plan (see current contribution limits) while minimizing the contribution to be made on behalf of other employees.

Like all profit-sharing plans, they may offer discretionary contributions, providing employers flexibility in the amount of contribution made each year and may include a 401(k) feature allowing for employee salary deferrals. Plans with this feature are qualified plans if submitted to and approved by the IRS. To maintain their qualified status, they must pass the General Nondiscrimination Test each year. Mutual of America offers this testing service and charges a fee for providing this service.

Request More Information

Select a link below to view more information about other specific group retirement plans:

Form DC-2003 or applicable state variation

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