Pension & Profit Sharing Plans

Profit Sharing Plans

Did you know that both employees and employers can benefit from profit sharing plans?

A profit sharing plan is a work benefit that is established and funded by a company that may choose to contribute 0-25% of employee compensation. Employees will benefit because the employer contributions are tax-deferred until withdrawn from the plan, and because earnings on plan assets are tax-deferred until withdrawal.

You as the employers will benefit because your contributions to a qualified plan are tax deductible for the business. Plan earnings are also tax-deferred until withdrawal, and you will see the improvement on morale, productivity, and worker retention.

Pension Plans

Pension plans are a type of retirement plan (usually tax exempt) where you as the employer makes contributions toward a set-aside pool of funds for an employee to receive upon retirement. The two main types of pension plans are defined-benefit plans and defined-contribution plans.

With defined-benefit plans, the employer guarantees that the employee will receive a set amount of funds upon retirement, regardless of the performance of the underlying investment pool.

In defined-contribution plans, the employer makes pre-set contributions for the employee, but the final amount that the employee gets will depend on the performance of the investment.

For more information on our Oklahoma profit sharing plans or our Oklahoma pension plans, contact us today!