|
Qualified
Retirement Plans
Age-Weighted
Profit Sharing Plan
An Age
Weighted Profit Sharing Plan uses age as well as compensation
as a basis for allocating plan contributions. This plan favors
the older highly compensated participant. It must follow all
of the basic profit sharing rules. As such, contributions
are limited to 15% of compensation. Unlike Target and Money
Purchase Plans, the Age Weighed Plan may have discretionary
contributions providing the employer flexibility.
An example
of a simple Age Weighted Profit Sharing Study can be viewed
below:
Age-Weighted
Profit Sharing Study 1
Age
Weighted Profit Sharing FAQ
Back
|
