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New Member
posted Feb 4, 2024 9:01:13 AM

IRC 414(J)

How can i tell if my Pension and 401K fall under the IRC 414(J) Rules for Alabama?

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1 Best answer
Level 15
Feb 4, 2024 9:42:00 AM

Section 414(j) simply says that any plan that is not a defined contribution plan is a defined benefit plan.  A 401(k) is a defined contribution plan, not a defined benefit plan.  A pension plan, as the term is commonly used by employers, is a defined benefit plan.

1 Replies
Level 15
Feb 4, 2024 9:42:00 AM

Section 414(j) simply says that any plan that is not a defined contribution plan is a defined benefit plan.  A 401(k) is a defined contribution plan, not a defined benefit plan.  A pension plan, as the term is commonly used by employers, is a defined benefit plan.