Are there folks out there who have had experience with 401 (a) plans? I'm a trustee and wonder if a 401 (a) wouldn't be better than a 401 (k).

Thank you.

I have never heard of a 401(a), only 401(k's) for private for profit type companies and 403(b's) for employes of non profits. Can you shed shed some light on what kind of company, entity can adopt a 401(a) if there is such an animal.

I've been told that some employers offer a 401(a) plan. I hadn't heard of them before either. I've done a Google search and haven't been able to get very much information about this type of DC plan. I'm interested in user comments about the benefits of this type of plan compred to a 401(k).

A 401(a) is a stock bonus, pension, or profit-sharing plan. Generally, in a 401(a), the company makes the contributions to the plan, though some can have employee contributions. Usually these plans allow for employee ownership via investment in company stock.

A 401(k) is much more flexible for employees hence its much greater popularity.