Money Purchase Plans
For Government Agencies with 25 or more employees
A money purchase plan with administrative and investment services from The Principal Financial Group® requires you to contribute a stated amount to each employee's retirement account each year. It can be used with 401(k), profit sharing, defined benefit, and nonqualified plans.
You can choose how much you want to contribute to the plan from a variety of different formulas. We'll help you with each formula so you can pick the best solution for your plan. Benefit formulas may be based upon:
- A flat percentage of each member's salary. For example, if you select 10% of payroll for your deposit, each member would receive 10% of their salary.
- A flat dollar amount. For example, you could contribute $5 per week for each member.
