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Get your taxes done using TurboTax
Your 401(a) plan is similar to the traditional 401(k) plans in that both you (the employee) and the employer can make contributions to the plan. The 401(a) tends to give you more flexibility in the types of investments. Unlike the 401(k), the 401(a) has a 2-year waiting period before the employee can participate.
If your employer is matching contributions, it is recommended that you maximum that match. The 401(a) plan has a maximum contribution of 25% of the employee(s)' salary where the 401(k) can be more than 25% as long as it doesn't exceed the annual dollar limit.
Your contribution to the plan is your tax break and maximizing your contribution (the 25% of salary) is your biggest tax savings tool for the current year.
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Elizabeth W, EA