Advanced Profit Sharing

Advanced Profit Sharing

This 401(k) option allows you to:

Reward different groups of employees with different levels of profit sharing

Profit-sharing contributions into 401(k)s are tax deductible for your business

Can be used in conjunction with a Safe Harbor 401(k) to help ensure you satisfy plan tests

Profit sharing can be a component of any plan design. It’s quite simple to provide a profit share of the same percent or amount across all employees. A special type of profit sharing that can allow more options is known as Advanced Profit Sharing or Tiered Profit Sharing.

Advanced Profit Sharing allows employers to identify unique groups of employees within the company and reward employees a different percentage or amount of profits by group.