Profit Sharing plan.
Choose an alternative that offers your business great flexibility without requiring employee contributions.
A plan for businesses with unpredictable cash flows
A Profit Sharing Plan is an employer-funded, qualified small business retirement plan that requires the establishment of a group trust used to hold the assets of all plan participants. The plan must be established by the end of the business tax year, usually December 31. Once the plan is set up, you have until your business tax return due date (including extensions) to make contributions for the previous tax year.
Profit Sharing Plan benefits include:
- The flexibility to make discretionary profit-sharing contributions each year
- Business tax deduction up to the lesser of 25% of eligible compensation per year or $45,000 per participant for 2007 and $46,000 per participant for 2008
- The design flexibility to require that employees be at least 21 years old, and to have worked for your company for at least one year (two years if vesting is immediate) to qualify
With profit sharing plans you get to:
- Vary contributions each year based on company profits
- Enjoy increased flexibility in choosing plan design features
- Establish vesting requirements to reward long-term employees
Apply now
To open an account or to get more information about retirement plans, please contact our Investment Services Group Retirement Desk at 1.800.774.4724. The group's hours of operation are Monday-Friday 8:00 am - 12:00 am and Saturday 8:00 am - 6:30 pm.
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Investment products are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated and:
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• Are Not FDIC Insured
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• May Lose Value
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• Are Not Bank Guaranteed
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Merrill Lynch, Pierce, Fenner & Smith Incorporated
is a registered broker-dealer, member NASD and SIPC, and a wholly-owned subsidiary of Bank of America Corporation.
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Merrill Lynch, Pierce, Fenner & Smith Incorporated is not a tax adviser. We suggest you consult your personal tax adviser before making tax-related investment decisions.
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