Profit Sharing

A profit sharing plan is a qualified defined contribution program that is funded by the employer and allows for discretionary annual contributions. A 401(k) feature can also be added to permit employees to partially fund the plan. A profit sharing plan is a suitable investment for any size company and is ideal for an employer who wants flexibility in costs and contributions. Businesses with unpredictable cash flows may find that a profit sharing plan works well for their business.

Let Kennon Wealth Management refer you to a quality, local plan administrator.
Typical Options of a Profit Sharing Plan Include:

• Only the employer contributes to the plan (unless a 401(k) feature is added.)
• Offers a variety of vesting options.
• Numerous investment vehicle choices.
• Multiple plan administrator choices.
• Loan provisions.

• Amount of employer contributions can change annually or at the employer’s discretion.
• Employer contributions are tax-deductible.
• Earnings on contributions grow on a tax-deferred basis.
• Investments can be directed by the employer or the employee.
• Providing this valuable employee benefit can have a positive impact on employer efforts to recruit and retain quality employees.
• Wide range of investment choices.