Business 401(k) Services / Retirement Plan Options

How Profit Sharing Works in a Retirement Plan

Image of Heather Wolfsmith for the video "Profit Sharing"

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

Visual

Profit Sharing

Fisher Investmentsยฎ 401(k) Solutions

Audio

[Upbeat music]

Visual

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)

Audio

[The volume of the music is reduced]

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

Visual

The camera zooms in as the woman continues to speak.

Audio

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.

Visual

The camera zooms back out.

Audio

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.

Visual

The camera zooms back in.

Audio

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.

Visual

The camera zooms back in.

Audio

When our clients do better. We do better.

Visual

The screen dissolved to white

Audio

[Music]

Visual

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.

Audio

The volume of the upbeat music increases.

Visual

Screen fades to black.

Audio

Music fades out.

pie chart and graph

See our Business 401(k) Insights

Resources and articles to help your business with retirement plan support, optimization and administration.

A couple talk with a business woman inside of an office with glass walls

Contact Us

One of our 401(k) business specialists would love to talk to you about your company's retirement plan needs.

two people shaking hands

Contact Us

One of our 401(k) business specialists would love to talk to you about your companyโ€™s retirement plan needs.

Call Us

(844) 238-1247

Get Me Started