Saving for retirement can be difficult. Using a profit-sharing plan could help prepare without any inconvenience. Profit-sharing plans let companies distribute stock to employees in a retirement account. Each plan follows a different set of rules, usually. So, check with your HR advisor to see how your plan is set up.
They all share a few characteristics in common, though.
Profit Sharing Provides Employees With Retirement Income
Businesses set up profit-sharing plans to give their employees a retirement account. They’re defined as any retirement account that accepts employer contributions. Using your company’s profit-sharing plan could help you feel more prepared. Once you’re ready for retirement, you’ll be happy you’ve got the account. Each employer decides how much they’ll allocate to employees when they’re designing plans.
Deferred Profit-Sharing Plans Award Employees Based on a Company’s Earnings
Usually, plans pay something out to their recipients after each quarter. Sometimes, they’re paid on an annual basis, too. Most companies determine compensation based on the company’s performance during the previous quarter. Better performance ratings typically lead to higher payouts.
Only the Company Contributes to Profit Sharing Plans
The best thing about profit-sharing plans in Rogers, AR is you don’t have to put anything in them yourself. All the money you’ve got in a profit-sharing plan comes directly from the company. So, you don’t have to deduct anything from your paychecks, unlike a 401(k).
Visit Dale Brunk, CEBS, AIF at www.mylandmarkfinancial.com to learn more.
Disclaimer:
Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠.
Insurance services offered through an Avantax affiliated insurance agency.
