Our Expertise

Profit Sharing Plans

Profit sharing plans allow plan sponsors to make discretionary contributions to their employees’ retirement accounts.  On the surface, they are often simple and easy to understand. However, there are a variety of allocation strategies and plan designs that can allow plan sponsors to customize plans to meet very specific goals and objectives – for the owners, the company and the employees.  Among these:

  • New Comparability, Integrated or Pro-Rata contribution Allocation Formula
  • 1,000 hour and Last Day of year allocation requirements
  • Eligibility and vesting provisions
  • Compensation definition

Investments in profit sharing plans can be participant-directed, trustee-directed, or a combination of the two.  We have experience in managing profit-sharing plan portfolios, and an extensive, proven investment education process to help employees in participant-directed plans make prudent, long-term decisions with their plan investments.