Profit-sharing plans are often a valuable tool for early-stage businesses from a founder tax planning standpoint. Older, more mature businesses sometimes also find PSPs beneficial for financial planning and perhaps succession planning purposes. Contrary to the 401(k), business contribution amounts can be flexible based on profits. In conjunction with business accountants, SG Long & Company’s advisors can help determine when a PSP might be appropriate for a business, and how best to implement that plan. The nuances of one PSP to the next can be diverse and numerous. SG Long & Company’s team can be a valuable tool in navigating those important, complex processes.
From a plan participant or employee standpoint, SG Long & Company’s focus is on providing a thorough, well-researched service environment and clear communication that leaves participants feeling confident they are making sound long-term financial decisions. Programs like profit-sharing plans potentially are an important piece of your financial planning puzzle — and it’s important that plan participants understand how and why.