Profit Sharing Plans

Profit Sharing Plans are a defined contribution plan whereby employers may determine annually how much they want to contribute each year. Employers that are not sure how much they can contribute find this plan desirable, because they can base their decision on annual profits.

CDSA-Profit Sharing Plans

Standard Profit Sharing Plans

Employers submit a discretionary or designated (by plan design) contribution based on employee’s annual wages annually.

Integrated Profit Sharing Plans

This type of Profit Sharing Plan is integrated with Social Security to increase the amount received by highly compensated employees.

Cross-Tested Profit Sharing Plans

A Cross-Tested Plan is a defined contribution profit sharing plan that allows companies to provide varying levels of contributions to different classifications of employees. These plans are cross-tested, therefore, special non discrimination tests apply.

Age Weighted Profit Sharing Plans

The Age Weighted Profit Sharing Plan allows employers to make contributions based on an employee’s age and salary. This option offers those closest to retirement the ability to receive larger contributions than younger employees.

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