401(k) 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 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
  • Recordkeeping and other administrative services
  • Investment related services (subject to plan fiduciary oversight)
  • Employee education, communication and enrollment

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.
  • Employer contributions to the plan are tax deductible, up to certain statutory limits.
  • 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 will be 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.

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