Profit Sharing
Flexible employer contributions inside a qualified retirement plan—useful for rewarding key people and deferring tax.
Reward the team. Defer the tax. Keep the flexibility.
A profit-sharing contribution lets the business put money into employees’ retirement accounts on top of (or instead of) a match. The key advantages: contributions are discretionary year-to-year, and the allocation formula can be structured to direct more dollars to owners and key employees.
Common allocation formulas
- Pro-rata — same percentage of compensation for everyone
- Integrated (Social Security) — more for higher-compensation employees
- New comparability / cross-tested — different groups, different percentages, often the best fit for closely-held businesses
We’ll model the math and pick the formula that fits the goal.
Let's see if we're a good fit.
A 30-minute introductory call—no pressure, no obligation. We'll talk through your goals and whether working together makes sense.