Contributions and earnings generally are not taxed by the Federal Government or by most state governments until they are distributed.The money contributed may grow through investments in stocks, bonds, mutual funds, money market funds, savings accounts, and other investment vehicles.A profit sharing plan benefits a mix of rank-and-file employees and owners/managers.A well-designed profit sharing plan can help attract and keep talented employees.Employers start a profit sharing plan for additional reasons: It allows the employer to choose how much to contribute to the plan (out of profits or otherwise) each year, including making no contribution for a year. They are a valuable option for businesses considering a retirement plan, providing benefits to employees and their employers.Ī profit sharing plan is a type of plan that gives employers flexibility in designing key features. Profit sharing plans can be a powerful tool in promoting financial security in retirement. ![]() ![]() Printer Friendly Version Why Profit Sharing Plans? Profit Sharing Plans for Small Businesses
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