is a money purchase plan an employer sponsored retirement plan 
a money purchase plan is considered an employer sponsored retirement plan that requires companies to contribute a specific percentage of an employee s salary each year regardless of the company s profitability 1the bottom linea money purchase plan is an employee retirement benefit plan that resembles a corporate profit sharing program where the employer deposits a percentage of a participating employee s salary in the account every year like most retirement plans the money purchase plan requires that employees refrain from distributions before age 59 1 2 the plan also has a provision for required minimum distributions 1