What is a Profit Sharing Plan?
A Profit Sharing Plan is a kind of retirement plan where the contributions come solely from the employer on a discretionary basis. Benefits are usually allocated based on the salary levels of participating employees. This kind of plan enjoys the same tax benefits as other retirement plans, and utilizes similar investing methods (e.g. stocks, bonds, and mutual funds.)
How does a Profit Sharing Plan benefit employers?
Any robust retirement plan is an effective aid in attracting the right kind of employees and keeping them happy as part of your workforce. However, a Profit Sharing Plan has a number of unique features which makes it especially attractive to employers.
- Discretionary Funding – Contributions are made solely upon the discretion of the employer. This can prove valuable when company cash flow is not always guaranteed.
- Plan Compatibility – A Profit Sharing Plan can stand alone as a company’s sole retirement plan, or it can work in conjunction with a previously existing plan.
- Company Size –There are no eligibility requirements for this plan. Businesses of any size may set up a Profit Sharing Plan.
Why Broad Financial?
Broad Financial is an industry leader in small business retirement plans. We understand that you’re new to this arena, and you could use the help of an experienced professional to guide you through the process. Our turnkey service will have your company’s retirement plan up and running with minimal effort on your part. Sit back as we take care of trustee services, administrative duties, customized plan documentation, trust fund arrangements, a recordkeeping system, and plan information for participating employees. With Broad’s knowledgeable Specialists and our A+ rating from the BBB, you know that you’re doing the right thing for your employees.
Call Broad today and find out how quickly you can setup a Profit Sharing Plan.