• The 401(a) plan is employer-sponsored and both employer and employee can contribute.
  • 401(a) plans are commonly used by government and non-profit organizations.
  • 401(a) plans give the employer a greater degree of control over how the plan is invested.
  • An employee may withdraw funds from a 401(a) plan through a transfer to another qualified retirement plan, a lump sum payment, or an annuity.
  • Investments in 401(a) plans are low risk and typically include government bonds and equity-based funds based on value.