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 PenSys Profit Sharing Plan |
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The
Profit Sharing Plan is one of the most flexible qualified plans available.
An employer can contribute up to 25% of the total compensation of all
eligible employees. The maximum amount that may be allocated to any one
participant is 100% of the participant's compensation or $49,000
whichever is less. The employer decides on a year-by-year basis if and
how much of a contribution will be made. It is not necessary to make a
contribution each year. Although employers may tie the level of contribution
to the profitability of the business, it is not required that the employer
show a profit in order to make a contribution.
Employer Advantages
- Contributions are discretionary. This enables the business to vary
contributions from year to year.
- Non-vested account balances forfeited by terminating employees can
be reallocated to the accounts of active participants or can be used to reduce future employer contributions
- Helps recruit and retain quality employees
- Is easy to establish
Employee Advantages
- Contributions
funded by the employer
- Build
their retirement savings
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