401f

The 401f is a type of tax-deferred retirement plan commonly offered by private sector employees in the United States. This plan is designed to provide employees with a more traditional pension plan, often resembling the features of a profit-sharing plan. The term "401f" is often associated with the IRC Section 401(f), which allows employers to offer non-elective and qualified plans.

A employer can elect to make contributions on behalf of all employees under the 401f plan, without requiring employee contributions. This program usually follows the eligibility requirements of the employer and offers a non-elective contribution rate to the employees in the eligible class.

Upon plan termination, the withdrawal and distribution rules of a 403(b) plan usually apply. The plan can also be a 194(f) plan or 403(b) plan. The funds are typically used for retirement purposes and allowed to grow tax-free until distribution.

Under the Pension Protection Act (PPA) of 2006, a 401f plan may receive certain payroll tax relief and can qualify for relief for drawbacks of unexpected depletion of pension funding, such as preselecting guarantee funding target retiree basis rules. The eligible employees must meet a series of age milestone big time requirements to trigger the non-elective account rollover for all income factors.