Profit-Sharing Plan

A flexible retirement plan for small businesses
  • Flexible contribution amounts that can vary from year to year.
  • Deduct employer contributions as a business expense
  • Offers a full range of investment choices
  • Use the Small Business Selector to find a plan 
up to 25% of compensation

or $53,000 in 2016 ($54,000 in 2017), whichever is less

December 30

setup deadline for the plan

Features of a Profit-Sharing Plan


Flexible Contribution Amounts - image

Eligibility information

Employees are eligible at age 21 and have worked at the company for at least one year (or two years if the plan does not have a vesting sechedule)

Tax benefits - image

Flexible contribution amounts

Employers can contribute up to 25% of income, or $53,000 in 2016 ($54,000 in 2017), whichever is less. Percentage contributed can vary from year to year

More for you and your employees - image

Tax-deferred growth potential

All investment earnings are tax-deferred; participants pay taxes only upon distribution

A full range of investments - image

Additional Features

You can create a vesting schedule for the plan, and your employees can borrow money against their accounts

Get up to $600 plus 60 days of commission-free trades

 for deposits of $10k or more.1 How it works

Get up to $600 plus 60 days of commission-free trades

 for deposits of $10k or more.1 How it works

Explore similar accounts


Plan for small businesses & self-employed individuals

For small business owners or self-employed people, the Simplified Employee Pension IRA is a low-cost path to tax-deferred retirement savings.


A retirement plan similar to a 401(k)

A SIMPLE IRA is an easy, inexpensive plan for businesses with less than 100 employees.

Individual and Roth Individual 401(k)

Retirement savings for the self-employed

This plan gives self-employed individuals (with no employees other than a spouse) the ability to maximize their retirement savings.