Business 401(k) Services / Retirement Plan Options

The Power of Profit Sharing

Image of Heather Wolfsmith for the video "Profit Sharing"

Watch this short video to learn how successful business owners can leverage a Profit Sharing component in their 401(k) to optimize the plan for tax savings.

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Profit Sharing

Fisher Investmentsยฎ 401(k) Solutions

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Female Voice: Profit sharing is a strategic tool that business owners can use to slash their taxes and turbo charge their savings.

A woman dressed in a navy blazer. A flyout in the lower left corner identifies her as Heather Wolfsmith Vice President of Marketing for Fisher 401(k)

A profit sharing plan can mean a lot of different things. The type that we are going to talk about today is related to a retirement plan.

And there are really three main types of contributions an employer can make to a retirement plan.

The first is a match contribution. The second is a safe harbor contribution. And the third is a profit sharing contribution.

Which weโ€™re going to talk little bit more about today.

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Profit sharing is a type of flexible contribution that allows business owners to save up to the IRS maximum of $64,500 per year. That contribution also is tax deductible and grows tax deferred.

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Profit sharing is a strategic tool for a business owner because it is both discretionary and flexible.

A business owner can decide year-to-year whether to contribute and how much to contribute.

It also has a 6-year vesting schedule. Which means that a business owner can incentivize employee retention.

We are small business retirement specialists, which means we have the knowledge and expertise to help business owners implement these sophisticated strategies.

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When our clients do better. We do better.

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Fisher Investments 401(k) Solutions. ยฉ 2021 Fisher Investments. Investing in securities involves the risk of loss. Intended for use by employers considering or sponsoring retirement.

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