Be empowered and enhance financial well-being with more information on a Profit Sharing Plans – fostering collaboration and prosperity for a brighter future.
A profit-sharing retirement plan is a retirement plan based on discretionary employer contributions based on internally generated profits. Contributions to a profit-sharing retirement plan are typically completed using a profit-sharing plan or a traditional 401k, depending on the employer’s preferences. Any contributions made to a profit-sharing retirement plan will grow tax-deferred until they are withdrawn or until retirement.
Those who may benefit most from a profit-sharing retirement plan will likely include:
Anytime you begin researching retirement plans and programs for your future, it’s important to address the advantages as well as potential drawbacks. With a profit-sharing retirement plan, there are notable benefits, such as:
As with any retirement strategy, there are also limitations when it comes to profit-sharing retirement plans, even if you’ve been a loyal employee of the same company for many years. Understanding a few of the potential drawbacks of profit-sharing retirement plans can help you determine if the path is right for you. Some limitations of a profit-sharing retirement plan that may matter to you when planning your own retirement include:
Are you looking for more options when it comes to planning your retirement? Are you interested in learning about profit sharing retirement planning? Take the retirement assessment quiz from Pathfinder Retirement.
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