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In an Age Weighted, or Age Based, Allocation, the basis for allocating the contribution reflects the wages and age of the individual participant.  A Participant's age is factored into the allocation as if the contribution were to accumulate to an annuity payable at the Plan's Normal Retirement Age.

A participant aged 55 would receive a higher contribution rate than a 25 year old participant because the 55 year old has 10 years of accumulation until age 65, whereas the 25 year old has 40 years of accumulation until age 65.

Age Weighted plans are typically used where there the key employees of the sponsor are also older than the non-key employees.