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401a Plans

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Hello everyone,


I know that this is a 403b/457b forum but I have a quick question on 401a plans since some are being instituted into school districts.


I understand the basics of the plan but have heard rumors that any contributions (employer or employee) to a 401a plan will REDUCE your reported salary which would affect your final year average salary which would then lower your pension. Therefore, it would not be in the best interest of an employee to join the plan.


Can anyone steer me in the right direction to show that this is true or not?


Thank you in advance!

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Section 401(a) plans have been around for decades and are usually administered by your state's PERS, not your local employer/school district. These plans can be a Defined Benefit Pension Plan OR a Defined Contribution Investment Plan or a combo of the two.


You heard rumors??? The "rumors" make little sense to me. Please keep us informed. Is the Plan operational or just in the rumor "phase". Do you have a choice to join or not to join?... that is the question. PLEASE CLARIFY THE SITUATION THAT CONFRONTS YOU.


Joel L. Frank

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