Profit Sharing: Have Your Turkey and Eat it Too!
With the end of the year and Thanksgiving nearing, many employers are looking for ways to give back!
Pairing a profit sharing plan with a 401(k) plan can boost interest in the 401(k) plan for the employees, as well as adding another option in the employer’s benefit offerings. Win-win!
The limit for total contributions to an individual’s 401(k) plan account is $54,000 in 2017. This includes elective deferrals and employer contributions. Adding a Profit Sharing plan to a 401(k) plan makes maxing out contributions to the employer’s own account easier, as well as boosting contributions in their employee’s accounts.
If you or your client is interested in adding a profit sharing plan to a 401(k) plan, call us to review the next steps involved in establishing a plan!