Are
contributions to age weighted profit sharing plans
required to be made every year?
An
age weighted profit sharing plan, while specialized, is
still a profit sharing plan. As such, it still follows
basic profit sharing rules. Thus, contributions may be
discretionary and not required.
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Why
would a client choose this type of plan?
This
plan favors the older highly compensated employee. This
employee may be the owner himself. It also is attractive
because often the owner can get to the $30,000 maximum
allocation without exceeding the 15% of compensation
limitation.
