TD Ameritrade

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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.

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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:

  • 2020 Tax Year: Lesser of 25% of compensation or $57,000
  • 2021 Tax Year: Lesser of 25% of compensation or $58,000

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


  • If you turned 70½ prior to January 1, 2020: Minimum required distributions start at age 70½
  • If you turn 70½ afterJanuary 1, 2020: Minimum required distributions start at age 72
  • 10% early withdrawal penalty if under age 59½ (exceptions may apply)

Further Details:

  • Review the TD Ameritrade Profit-Sharing Guide for additional details
  • Employer contributions completely discretionary and can skip years if needed based on how the company performs
  • Can have other retirement plans in addition to profit-sharing
  • Please refer to the IRS page on profit-sharing plans for additional details

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