3 Retirement Plans That You Didn’t Know About

There are several retirement plans that are commonly used by Americans that will stand them in good stead for the future. The more common of these are 403b, 401k and 457s and some of these plans are sponsored by employers.

However, this does not mean that there aren’t any other options that are employer-sponsored. So here are 3 retirement plans that you probably don’t have any information about:

#1: 401a plans

Almost all retirement plans (such as the 401k) have to follow the rules stated in paragraph A of the Section 401 under the Internal Revenue Code. While these types of plans might be similar to other plans in terms of tax treatments and contribution limits, they do not have to work within the strict nondiscrimination rules that other plans have to adhere to.

#2: VEBAs

Also known as the Voluntary Employee Beneficiary Association, this plan is classified as a group form of a welfare benefit plan. Multiple employers can merge their benefit accounts and which is why this plan is basically a pooled version. While not necessarily like other conventional plans, this plan in particular, works in pretty much the same way in regards to aspects such as tax treatment, rules when it comes to contributions and distributions of the plan as well as the segregation of assets.

#3: 419e plans

Also known as Welfare Benefit Plans, these plans are used to fund insurance benefits that employee can avail of when they retire. Depending on how the plan is set up for each individual, they will be able to avail of benefits related to life, health, dental, supplemental disability and Medicare supplemental insurance.