Business 401(k) Services / Retirement Plan Options
How Profit Sharing Works in a Retirement Plan
There are a lot of ways to approach profit sharing. Learn how profit sharing via your retirement plan can help business owners boost their retirement savings, maximize the strategic potential of their retirement plan, and optimize their tax savings.
Transcript
Profit Sharing
Fisher Investmentsยฎ 401(k) Solutions
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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)
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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.
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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 weโre 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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