Case Studies

In this case study, the business offers a 401(k) plan with a pro-rata profit sharing component. The structure of the profit sharing program requires significant annual employer contributions to the employees in order for the owner to maximize her benefits.

While she enjoys the benefits of her Profit Sharing plan, her objectives in the near-term are to:

1. Reduce the annual cost of the profit sharing contributions

2. Continue to maximize her annual retirement contributions