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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

11 Section 390 Change #02-2024 October 1, 2024 Section 401(a) IRS Code Keogh Plan “Informal” term for retirement plans available to self- employed people. Section 401(a) IRS Code Money Purchase Pension Plan Employer-based defined contribution plan under which annual contributions are fixed by a set formula. Section 401(a) IRS Code Profit-Sharing Plan Employer-based defined contribution plan under which employer contributions may, but need not be, linked to profits. Usually refers to non-matching employer contributions Section 401(a) IRS Code Simple 401(k) 401(k)-type plans available only to small businesses: exempt from certain restrictions and subject to some limitations on employer contributions. Section 401(a) IRS Code 401(k) Defined contribution plan that allows employees to defer receiving compensation in order to have the amount contributed to the plan. Commonly referred to as a “cash or deferred arrangement” (CODA). Some 401(k) plans allow after-tax Roth 401(k) contributions. Section 403(a) IRS Code 403(a) Plans that are similar to 401(a) plans but are funded through annuity insurance Section 403(b) 403(b) Tax-sheltered annuity or custodial account plan offered by tax-exempt section 501(c) organizations or public schools. Many are funded by employee contributions that resemble 401(k)s. Section 408 IRS Code IRA Vehicle for tax-deferred retirement savings controlled by individuals rather than employers Section 408(p) IRS Code Simple retirement account IRA Employer-based IRA (to which employers and employees contribute) available to small businesses. Section 408(k) IRS Code Simplified Employee Pension Plan (SEP) Employer-sponsored plan available only to small businesses; allows employer to contribute to employee accounts that function as IRAs and are subject mostly to IRA rules. Generally ceased to apply in 1996. Section 408A IRS Code Roth IRA Same as IRA, except that qualified distributions are tax exempt. Section 457(b) IRS Code Eligible 457(b) Plan Funded plan offered by state and local governments or unfunded plan offered by nonprofit organizations. Section 501(c)(18) Section 501(c)(18) Plan offered mostly by unions. Had to be set by June 1959 and are now largely obsolete.