Helping participants achieve successful retirement.
Profit sharing plans can be a key factor in employee motivation, retention, and satisfaction. Alerus consultants can help determine the best profit sharing arrangement to meet the goals of each employer.
Profit sharing plans are defined contribution plans that allow employers to make contributions on behalf of their participants.
- All contributions to the plan and investment earnings compound tax-deferred until withdrawn at retirement.
- Plan sponsors are not required to make a contribution to the plan.
- Contributions to the plan are discretionary, which allows the employer to increase or decrease contributions based on company performance. The employer also has the option not to contribute during a particular plan year.
- Contributions are deductible on the employer’s Federal income tax return.