Plans

Profit Sharing Plan

Reward and Retain Employees with Flexible Funding

We know that some years are financially better than others. Even in established practices, there are times when the money just isn't there to contribute to a retirement plan. Then there are other years where employers want to reward employees and contribute as much as they can, tax-deferred, for their retirement.

A Profit Sharing Plan addresses the need for contribution flexibility year-to-year. Employers can choose how much or how little to contribute in a given year with no advance commitment required. Employers can even contribute 0% in a given year and as much as 25% of total compensation paid to all employees. A plan illustration can show employers just how much they may be able to set aside tax deferred for themselves and what it may cost them for employee participation.

The ADA Members Retirement Program provides all the tools and administrative support for an employer to easily set-up and manage a profit sharing plan. Our Retirement Program Specialists work with employers one-to-one to provide all the help and assistance they and their employees need to make informed decisions about their investments and to take advantage of all the benefits of the latest tax law changes.

Employers should consult with one of our Retirement Program Specialists who can provide them with information to help them determine if a Profit Sharing Plan is right for their situation. And, if they wish, we can also arrange for them to receive a customized retirement plan proposal from an Members Retirement Program Specialist at no cost or obligation to them.

Highlights

  • No predetermined contribution formula.
  • Only employer may contribute.
  • Vesting schedules may be adopted to reward long-term employees.
  • Employee contributions must be made by employer if employer wishes to contribute for themselves.
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