
Profit Sharing Plan Overview:
Who Can Offer This Plan:
Any size business.
Advantage:
Employers have flexibility to vary the annual contributions. Appropriate for businesses
with unpredictable cash flow.
Administrative Expense:
Moderate.
Administrative Complexity:
Low.
Funding:
Employer contributions.
Annual Contribution Limits:
Total contributions to a participant's account are limited to the lesser of 25%
of the eligible participant's compensation or $51,000.
Annual Deduction Limit:
Company can deduct up to 25% of compensation of all plan participants.
Participant Loans
Participant loans may be a feature of the plan.
In-service Withdrawals:
In-service withdrawals may be a feature of the plan.
Vesting:
May vest immediately or over time according to an appropriate vesting schedule.