Skip to main content
Home > In the News > The Business of Saving

Latest News

The Business of Savings


Advanced profit sharing 401(k) aligns goals, rewards, and costs


More and more small businesses are using advanced profit sharing to save more and better manage employee contribution costs too.

Advanced profit sharing enables a company to identify unique groups in an organization and reward employees’ a different share of profits by group. For example, a legal firm may have partners, attorneys, and staff. Each can receive a different payout structure of profits as part of their 401(k). This can be a great way to align goals and compensation by each group’s contributions to your company’s success.

Advanced profit sharing can be a much more cost-effective way to provide contributions to employees than the standard profit sharing method which applies the same percent of salary across the board to all employees. Many company’s use 401(k) profit sharing plans for the simple reason that employer profit sharing contributions placed into a 401(k) plan are tax-deductible for the firm.

You may find the article Profit sharing boosts nest egg in the Connecticut Post of interest. It includes an example of how an owner can save $49,000 a year and help employees too.

RSS Subscribe

Next Steps

Watch a Demo »

Receive a Quote »

Get a 401(k) Overview »

Call Us

401(k) Consultants are available
Monday - Friday, 9am - 8pm EST
800-943-6108 x1

Previous Posts

The Business of Saving »
— General Manager Posts

Down the Road »
— blog

In the Media »
— Articles and interviews

For Immediate Release »
— Press Releases

Public Relations Contact

Alison Cahill-Rouse
Contact Us »

About the author »