Defined Contribution Plan Account
Looking for a tax-deductible method of providing employees with a retirement plan that matches some or all of their salary? A Defined Contribution Plan Account may be an appropriate investment vehicle for you.
Janus Henderson offers two types of defined contribution plans: Money Purchase Pension Plans and Profit Sharing Plans. These plans may have more plan elections, such as a vesting schedule and other eligibility requirements elected by the employer. If the business' retirement plan will only cover a few individuals, i.e., sole proprietor including their spouse and other family members, then a Simplified Employee Pension (SEP IRA), may be more suitable and easier to administer.
Janus Henderson is a prototype plan document provider, therefore it may not be necessary for an employer to create their own plan. However, the Janus Henderson plan documents only offer generic plan elections/provisions and thus a more complex plan may require the employer to create their own individually designed plan.
These types of plans may require additional advice from an attorney or a tax professional to ensure the plan is properly managed.
Money Purchase Pension Plan (MPPP)
The MPPP allows employers to contribute a predetermined contribution amount to a retirement savings account for the benefit of employees.
Profit Sharing Plan (PSP)
The amount contributed to a PSP may be at the employer’s discretion each year, thus an employer is not locked into a predetermined contribution amount as it would be for an MPPP. Generally, PSP contribution rates must be the same for all eligible plan participants.
Is a Defined Contribution Plan right for you?
A defined contribution plan is an employer-sponsored retirement plan that allows the employer to contribute for the benefit of their eligible employees, including themselves. Employees may not contribute to this type of plan.
Tax Features and Investments
Withdrawals and Helpful Information
Open a Defined Contribution Plan Account
If you are an employer wishing to provide retirement benefits to your employees, and make deductible contributions to their accounts, a Defined Contribution Plan may be an ideal investment vehicle. For more information, contact a Janus Henderson Retirement Specialist at 800.525.1093 weekdays between 9 a.m. and 6 p.m. EST.
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