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.