Profit Sharing

Profit Sharing plan is a plan in which employees share the profits of the company. The company will decide what portion of that profit will be shared. Each employee will receive a percentage of those profits based on the company’s earnings.  Typically, there are restrictions as to when and how you can withdrawal these funds without penalties. Some employer requirements must include all employees that reached the age 21 and have completed one year of service. Employers may exclude employees who have worked less than 1,000 hours.