Advantages of a Profit Sharing Plan
Your Advantages
You benefit because a profit sharing plan:
- Lets you deduct your contributions from taxes as a business expense
- Allows you to provide a meaningful plan at an affordable cost
- Lets you focus contributions on merit pay
- Helps recruit and keep quality employees
Employee Advantages
Plan members benefit because a profit sharing plan allows them to:
- Defer taxes on your contributions and their earnings until the plan pays benefits
- Build retirement security
