Profit sharing plans offer something that most other types of plans don't - flexibility. An employer can make a profit sharing contribution whether or not the company has a current or cumulative profit. In any given year, the contribution can range from 0% to 25% of Plan Compensation.

Pension Review Services custom-designs profit sharing plans in order to meet the objectives of the client. Click here for Illustrations of types of profit sharing plans. Plans can be set up to allow immediate entry for employees or to require an employee to complete one or even two years of service before becoming eligible.

Vesting schedules can also be arranged so that all years of service are credited or only years beginning with the effective date of the plan. Employees do not have to be fully vested before having completed six, or in some cases seven, years of credited service. When an employee leaves, his or her non-vested account balance can be allocated to the remaining participants, or used to reduce future company contributions. Discussion and illustrations of the different types of Profit Sharing Plans, including New Comparability Plans, follow. Contact us for more information!

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