Paychex 401(k) Profit-Sharing Plan
Capitalizing on retirement plan contributions can be simple and affordable for highly compensated business owners, even if their companies are small and their employees have a range of salaries. With a profit sharing plan, your clients have the opportunity to share company profits with their employees at their discretion, with regard to company plan contributions.
How Does a Profit-Sharing Plan Work?
Plan contributions are discretionary, are not tied to company profits, and are a tax-deductible expense for the company. Profit-sharing options like New Comparability and Age-Weighted formulas allow maximization of contributions to certain key earners, as defined by the employer.
Why Should I Recommend a Profit-Sharing Plan?
When your clients offer a profit-sharing plan, they can maximize the retirement accounts of key employees and help recruit and retain those employees while minimizing the total cost to the business. Primary benefits include:
- Varied yearly contributions, depending on the economic success of the business.
- Various allocation methods allowing a plan design that best fits your clients.
- Plan contributions that can be deducted as a business expense.
Paychex Offers Expert Consulting and Planning
We make it easy to set up and administer an ideal retirement plan. Paychex delivers expert consultation, high-quality investment choices, and a process that makes the complicated simple.