Profit Sharing Plan Overview:
Who Can Offer This Plan:
Any size business.
Employers have flexibility to vary the annual contributions. Appropriate for businesses with unpredictable cash flow.
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 may be a feature of the plan.
In-service withdrawals may be a feature of the plan.
May vest immediately or over time according to an appropriate vesting schedule.