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Profit Sharing

Reward your employees with a profit-sharing retirement plan

A profit-sharing retirement plan may be a good choice for you if you have variable profits but want to reward your employees by giving them a percentage of the company’s profits. This type of plan offers you flexibility in determining annual contribution amounts. You decide how much you want to contribute each year and can even skip years if necessary.

When you choose to invest for the future at TD Ameritrade, you will not be charged administrative or account maintenance fees.** You also get access to a breadth of investment choices, and guidance from our team of Investment and Financial Consultants.

Speak with a Financial Consultant to get started today at 800-472-0586.

Best For:
  • Self-employed individuals and small business owners with up to 100 employees
Tax Benefits:
  • Tax-deductible contributions as the employer
  • Tax-deferred growth potential
Employee Contribution Limits:
Not applicable
Employer Contribution Limits:
  • 2021 Tax Year: Lesser of 25% of compensation or $58,000
  • 2022 Tax Year: Lesser of 25% of compensation or $61,000
Date New Account Must Be Opened By:
  • New account must be established by the end of the employer's tax year (Generally December 31)
Funding Deadline:
  • New account must be funded by the employer's tax return due date plus extensions (Tax return due date generally: April 15. Extension due date generally: October 15)
Administrative Responsibilities:
  • Discrimination testing
  • Annual filing of Form 5500 Series return report
  • Participant disclosures
Withdrawals:
  • If you turned 70 1/2 prior to January 1, 2020: Minimum required distributions start at age 70 1/2
  • If you turn 70 1/2 after January 1, 2020: Minimum required distributions start at age 72
  • 10% early withdrawal penalty if under age 59 1/2 (exceptions may apply)
Further Details:
Important Plan Provision Changes:
  • New plan loan provisions are no longer offered in the TD Ameritrade Profit Sharing plan. All outstanding plan loans must be paid off by May 31, 2022 to continue to use the TD Ameritrade plan document.

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

Check the background of TD Ameritrade on FINRA's BrokerCheck