Profit Sharing

This is often a business' first retirement plan. The simplicity, low cost and flexibility in funding often appeal to young or volatile businesses. The plan allows employers to reward employees in profitable years with greater retirement benefits.

Key Benefits

  • Employer contributions to the plan are entirely discretionary
  • The plan can be easily upgraded to add a 401(k) benefit later
  • Vesting of employer contributions creates an incentive for employees to remain with the employer and thus reduce the cost of turnover.

Capabilities

Plan Design
We review each plan provision to help the client understand the options available and the implications of each. We also assist in the selection of an investment portfolio that is consistent with the objectives of the trustees.
Implementation
We prepare the plan document, Summary Plan Description, specimen Board Of Directors Resolution adopting the plan, loan policy, and QDRO procedure. We obtain a determination letter from the IRS approving the plan. We also provide forms for employees to make various elections and designations.
Ongoing Administration
The ongoing administration of the plan includes trust accounting, eligibility determination, Summary Annual Report, Top Heavy determination, application of all contribution and deduction limits, preparation of the IRS form 5500 filing and coordination with auditors. We continually monitor the operation of the plan to insure that it continues to maintain its qualified status even when the requirements change.