- Tax Planning
- Tax Services
- Tax DeductionsTax deduction limits must also be taken into consideration. Employer contributions cannot exceed 25% of the total compensation of all eligible employees. For example, a company with only one employee earning $100,000 in 2017 would have a maximum deductible employer contribution of $25,000 (25% of $100,000). However, the employee could also make an $18,000 401(k) contribution to the plan. As a result the total amount credited to his account for the year would be $43,000 (43% of his compensation), and the contributions would meet the 2017 maximum annual limit since total contributions are less than $54,000.
- Income Tax
- Investment Management
- Accounting Services
- Payroll Services
- Financial Planning
- Retirement PlanningProfit sharing plans may also use an age-weighted allocation formula that takes into account each employee's age and compensation. This formula results in a significantly larger allocation of the contribution to eligible employees who are closer to retirement age. Age-weighted profit sharing plans combine the flexibility of a profit sharing plan with the ability of a pension plan to provide benefits in favor of older employees.