| Profit Sharing Plans
A plan that allows for discretionary
annual contributions by the employer.
Key Benefits of a Profit Sharing Plan:
- Employers can vary the amount they contribute
to the plan.
- Vesting schedule is determined by employer.
- Withdrawals are governed by the plan document
and may be restricted.
- Employers may offer participant loans.
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Who Can Establish:
- Self-employed Persons
- Partnerships
- S-Corporations
- C-Corporations
- Non-profit Groups
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Annual Contributions:
-
Up to the lesser of 100%
of compensation or $41,000 per employee. Total
deductible contributions cannot exceed 25%
of total eligible compensation.
-
Maximum eligible compensation:
$205,000.
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Profit Sharing Candidates:
-
Employers who wish to take
on the responsibility of funding their employees'
retirement.
-
Employers who wish to motivate
their employees by tying employer contributions
to company profits.
-
An employer who does not
desire an annual commitment to funding retirement
or who may have cash flow inconsistencies
due to business cycles or other causes.
-
Businesses who want more
control than a SEP and are willing to pay
the annual maintenance costs.
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Contact a UVEST Investment
Consultant to go over your options for retirement.
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