401(a)

Learn about 401(a) and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
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What is a 401(a)?

 

A 401(a) is a workplace retirement plan that is sponsored by an employer. It is a savings plan vehicle that is offered by government agencies, non-profit organizations, and educational institutions.

 

What makes a 401(a) unique? 

 

Unlike other employer-sponsored retirement plans, you cannot open a 401(a) on your own. It is only offered by the employer to specific employees in the organization as an incentive or added benefit.

 

Who can make contributions to a 401(a)?

 

Contributions to a 401(a) may be made by the employer, the participating employee, or both. The employer will set the contribution model and amount.

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