I'm considering an opportunity outside of my current company, and the have a money purchase pension plan. (In addition to a 401K). They contribute 10% each year, and then after 3 years of service, you are "fully vested in the benefit earned in the plan."
I'm not really familiar with this, all my previous employers have only had 401Ks.
From my understanding, the contribution is required by the employer and is not tied to company/employee performance. How is it invested?
If anyone is familiar with this type of plan, can you give me some basics? How is it treated from a tax perspective?
I'm not really familiar with this, all my previous employers have only had 401Ks.
From my understanding, the contribution is required by the employer and is not tied to company/employee performance. How is it invested?
If anyone is familiar with this type of plan, can you give me some basics? How is it treated from a tax perspective?