Types
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THE PROFIT SHARING PLAN
HIGHLY FLEXIBLE. HIGHLY VALUABLE.
Without doubt, employees play a crucial role in the success of any business. For that, many employers utilize the profit sharing plan to reward their loyalty, hard work, and dedication.
With a profit-sharing retirement plan, you choose, in consideration of your profits or other factors, whether or not to make a contribution to the plan during any given year. You also choose the amount. At the end of the year, contributions are divided into separate accounts for each eligible participant based on a pre-determined formula.
While the contributions being discretionary is a great benefit to you as the employer it can mean inconsistent retirement savings for your employees. For that, you can add a 401(k) feature to your profit sharing plan. Combining the two plan types provides ultimate flexibility for your business and your employees.