Prior to 2002, Money Purchase Plans allowed for higher contribution levels tha n those available under Profit Sharing and 401(k) Plans. However, beginning with 2002, contribution levels in a Profit Sharing or 401(k) Plan can match or exceed the contribution levels available in a Money Purchase Plan. As a result, Money Purchase Plans, with their required contributions, have fallen out of favor.
If you currently have a Money Purchase Plan, there may still be a good reason to maintain it, but suppose there isn’t. Let us do an analysis to see if there is a better plan for you today. |
