Money Purchase Plan 

A Money Purchase Pension Plan allows your company to make annual contributions that are not tied to profits. In many ways it operates like a profit sharing plan except you are required to contribute the same percentage of employee's salaries each year.

Advantages:

these plans offer dependable annual contributions.

these plans have predictable employer costs.

these plans are easy to administer and explain to employees.

Disadvantages:

it may not provide an adequate retirement program for older participants because they have less time to accumulate sufficient assets.