401(a) Retirement Plan overview

What is a 401(a) Plan?

401(a) plans are employer-sponsored defined contribution retirement plans available to governmental, for-profit and not-for-profit employers. While employers are not obligated to make contributions each year, there must be recurring and substantial contributions. Like other defined contribution plans, the benefit each employee receives depends on how much is in their individual 401(a) account at retirement. 401(a) plans generally do not allow employee salary deferral contributions.

Employers and employees benefit from the 401(a) plan in many ways:

Benefits for employers

Helps attract and retain quality employees
Helps employees build retirement security

Benefits for employees

Earnings are not taxed until they are withdrawn. Generally, withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and may be subject to a 10% federal tax penalty, unless an exception applies.

What our clients are saying*

"Once COVID hit...

our Mutual of America representative offered virtual meetings to discuss things like the volatility in the financial markets and to help ensure that our employees remained focused on their long-term retirement goals."

- Yvonne Mariajimenez, President and CEO of Neighborhood Legal Services of Los Angeles County

The support you receive with our 401(a) plan

Our services, designed for the service level you select, include:

Plan document services, including plan documents, restatements, amendments, Summary Plan Descriptions, and Summaries of Material Modification.
Recordkeeping and other administrative services, such as receiving employee information provided by you or your payroll provider, processing new participant enrollment, maintaining plan and individual account records, executing participant-initiated investment transactions, processing participant requests related to loans and distributions, providing participant access to accounts, and providing a plan sponsor website with access to participant-level and plan-level information.
lnvestment-related services, including making investment options available from which you or your investment fiduciary may select an investment menu to be made available to your plan participants.
Employee education, communication and enrollment.

Your local Mutual of America office can provide a complete list of the services we provide.

You should consider the investment objectives, risks, and charges and expenses of the investment funds and, if applicable, the variable annuity contract, carefully before investing. This and other information is contained in the funds' prospectuses and summary prospectuses and the contract prospectus or brochure, if applicable, which can be obtained by calling 800.468.3785 or visiting mutualofamerica.com. Read them carefully before investing.

*Statements made by clients of Mutual of America are not paid testimonials. These testimonials may not be representative of the experience of other clients and are not indicative of future performance or success.

401(a) Retirement Plan overview

Benefits for employers

Benefits for employees

"Once COVID hit...

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