A profit sharing plan is a qualified defined contribution program that is funded by the employer and allows for discretionary annual contributions. A 401(k) feature can also be added to permit employees to partially fund the plan. A profit sharing plan is a suitable investment for any size company and is ideal for an employer who wants flexibility in costs and contributions. Businesses with unpredictable cash flows may find that a profit sharing plan works well for their business.

Let Richard Financial Resources, LLC refer you to a quality, local plan administrator.

Typical Options of a Profit Sharing Plan Include:

  • Only the employer contributes to the plan (unless a 401(k) feature is added.)
  • Offers a variety of vesting options.
  • Numerous investment vehicle choices.
  • Multiple plan administrator choices.
  • Loan provisions.
Benefits of Profit Sharing Plans
  • Amount of employer contributions can change annually or at the employer’s discretion.
  • Employer contributions are tax-deductible.
  • Earnings on contributions grow on a tax-deferred basis.
  • Investments can be directed by the employer or the employee.
  • Providing this valuable employee benefit can have a positive impact on employer efforts to recruit and retain quality employees.
  • Wide range of investment choices.