MERS Defined Contribution Plan provides you with an account to which contributions are made and assets are invested. When you retire, your benefits are based on the total amount of money in your account. As a qualified plan, you are not taxed on your employer contributions or earnings until you withdraw your assets.
Consequently, is MERS a qualified retirement plan?
The MERS Defined Contribution Plan (MERS DC) is a qualified retirement plan under Section 401(a) of the Internal Revenue Code. This plan allows employers and employees to make pre-tax contributions to an account that accumulates tax-deferred.
Considering this, is MERS a 401k?
MERS is an independent, professional retirement services company that serves municipal members across the state of Michigan. … This plan is a qualified retirement plan under Section 401(a) of the Internal Revenue Code (also known as a governmental money purchase plan).
How is superannuation defined benefit calculated?
Your defined benefit component is calculated with a formula based on your contributions, your age, your work arrangements, and your salary over the last 5 years. Your contributions to the defined benefit component are pooled together with other defined benefit members’ contributions and invested together.