Plan description

A plan that allows for discretionary annual contributions by the employer.

Key features

• Employers can vary the amount they contribute to a profit sharing plan.
• Vesting schedule is determined by the employer.
• Withdrawals are governed by the plan document and may be restricted.¹
• Employers may offer participant loans.

Who can establish

Self-employed persons, partnerships, S-corporations², C-corporations² and nonprofit groups.

Annual contributions

Please see Retirement Plan Limits for the current compensation and contribution limits for this plan.

Annual fees

Third-party administrative services are required. Fees may vary.

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¹ Amounts withdrawn from retirement plans are generally includable as taxable income in the year received and may be subject to tax penalties if withdrawn prior to 59 1/2.

² S-corporations and C-corporations are two different types of legal structures, each of which is subject to different tax rules.

This information does not constitute tax advice. Please consult your tax advisor about your particular situation.