In the qualified plan realm, sometimes a Defined Contribution Plan (DC) such as a Profit Sharing Plan is an ideal design for a small office. Consider the following example for a 2017 Plan Year:
There's been a revolution in the retirement-plan world, and many employers have chosen to replace traditional pension plans with defined-contribution 401(k) plans, although some employers still provide access to broader-based profit-sharing plans. Knowing the difference between these two types of retirement plans is essential when choosing the right plan for your company.
On October 19, 2017, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations and compensation thresholds for pension plans and other retirement-related items for tax year 2018
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