401(a) Plan

Just like a 401k plan, except employers have a whole lot more control over what happens with the money, i.e. how it gets invested, and how the employee contributes to it. 401a plans can be individually targeted so that Suzie may have a very different looking 401a plan system than loud-mouthed Judy who sits across the cubicle from her. Also, in a 401a plan, both Suzie, loud-mouthed Judy, and anyone else in the plan is required to contribute some minimum amount of money each year, whereas in a 401k plan, all contributions are optional. And lastly, in a 401k plan, the employee designates where their pension money is invested. But in a 401a plan, the boss designates where the dough goes. 401a plans are generally used for governmental and intentionally non-profit companies, whereas 401k plans treat their employees like they actually have a full brain in their skull, and are used for regular, for-profit corporations.