Thrift 401(k) Plan

[Guest Mardi Gras]

What is the difference between a "Thrift" 401(k) Plan and a regular 401(k) Plan?

[MGB]

There is no official or technical definition to a "thrift plan." Whoever is using that name may imply just about anything they want to.

Before 401(k)'s, there were many plans called "thrift plans." These usually meant after-tax (because we didn't have section 401(k) yet) employee contributions with or without an employer match.

If they are still following this old nomenclature, I would guess a "thrift 401(k)" is one that allows after-tax contributions. Again, that is not an official term and the user may mean something completely different.

[mbozek]

"Thrift PLan" is an obsolete term (like Keogh plan) that in pre 401(k) days described a ps plan that permitted after tax employee contributions that were some times matched by the er. Some IRS rulings used the term. Today a 401(k) plan can permit both pre and after tax contributions and the after tax amts can be distributed at any time with earnings. Some ers may still maintain a thrift plan which only permits after tax employee contributions.

[Erik Read]

Thrift's could also have been Money Purchase Pension Plans prior to '84(?) and grandfathered for CODA sections included in the pendion plan.