401(k) Retirement Savings Plan overview

Providing the information you need to open a plan with Mutual of America today.

What is a 401(k) Plan?

The 401(k) is one of the most popular forms of defined contribution retirement savings plans. Employees who participate in the plan make contributions, usually through payroll deductions. 401(k) plan sponsors often make a base and/or matching contribution.

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

Benefits for employers

  • Funded in part from dollars paid as salary, and employer contributions (which are tax-deductible), up to certain statutory limits
  • Helps attract and retain quality employees
  • Helps your employees build retirement security

Benefits for your employees

  • Easy to save through payroll deduction
  • Choice of how much to save, subject to applicable lRS limits
  • Savings amounts can be adjusted as needs change
  • May reduce taxable income
  • Defers taxes on the amount saved and earned, until the participant receives benefits, unless received as tax-free qualified Roth distributions. 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 certain exceptions apply.
What our clients are saying*

"They support our employees and their planning for the future...

but they also support our organization and the mission of what we're doing here for patients. We really feel like we have a very personal touch, personal relationship with the folks at Mutual of America."

- Lori Bassett, Head of Communications of Greenwood Genetic Center

Designated Roth 401(k) Contribution feature

Enhance your employees' retirement planning choices by providing them with an additional option to make Designated Roth 401(k) Contributions on an "after-tax" basis under your retirement plan. Qualified distributions1 from designated Roth accounts are completely free of federal tax.

Distributions from Designated Roth Accounts that don't meet the requirements described above will be taxed as ordinary income to the extent attributable to earnings, and may also be subject to a 10% early-distribution tax penalty.


  • Investment earnings on Designated Roth Contributions must be received after a five-taxable-year period that begins on January 1 of the year of your first designated Roth contribution.


  • Employees 59½ or older.
  • Employees who have become disabled or passed away.

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.

1Qualified distributions are distributions made after five consecutive tax years beginning with the first year of contribution and after reaching age 59½, disability or death.