Profit Sharing Plans

A Profit Sharing Plan is one of the most flexible qualified retirement plans. Contributions are discretionary, meaning you can raise, lower, or eliminate contributions as your profits dictate from year to year. Profit sharing plans can be integrated with Social Security, an advantage which can provide business owners and key employees with additional benefits.

Why Provide a Profit Sharing Plan?

  • Tax-Deductible Contributions

    All contributions to a Profit Sharing Plan (up to the allowable limit) are deductible for federal and, in most cases, state income tax purposes. This favorable tax treatment may provide a reduction in your company’s current taxes. If you are self-employed, contributions are deductible on your personal tax return.
  • Tax-Deferred Growth

    All contributions to your Profit Sharing Plan account compound tax-deferred until withdrawn at retirement. Your investment can accumulate more quickly than in a non tax-deferred investment vehicle.
  • Generous Contribution Limits

    You may be able to contribute as much as 25% or up to $52,000 in 2014, whichever is less, to a Profit Sharing Plan account.
  • An Attractive Employee Benefit

    Small business owners may set up a Profit Sharing Plan as a way to compete with larger businesses for quality employees. This popular and highly visible employee benefit can help you attract and retain the employees you need to succeed in today's competitive business environment. Unlike large company plans, a Profit Sharing Plan is easy to establish and maintain.


For more information on establishing a Profit Sharing Plan, visit

  • Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value