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.