Pioneer Investments: Age-Based Profit Sharing


Small Business Plans
Uni-K
About Uni-K
Uni-K Roth
Who Should Consider
Contributions
Benefits
Loans
Roth Rollover Guidelines
FAQ
Uni-K Calculators
SEP IRA
SIMPLE IRA
Age-Based Profit Sharing
Home Retirement Center Small Business Plans Age-Based Profit Sharing Printable Version
Age-Based Profit Sharing

Age-based plans especially appeal to business owners who are older and more highly paid than most of their employees. Like traditional profit sharing plans, employer contributions are flexible. But age-based plans allocate contributions under a formula based on both age and salary, giving older participants a higher percentage of salary than younger ones. For 2014, a business can contribute up to 25% of the total eligible payroll, with individual allocations limited to 100% of pay up to $52,000 (20% for unincorporated business owners).


Who May Establish Sole proprietors, partnerships, corporations, government and nonprofit entities.
Establishment Deadlines Tax year-end.
Contribution Deadlines Tax filing date, including extensions.
Who Contributes Employer.
Annual Contribution Limit 25% of total eligible payroll (20% for unincorporated business owners), with no more than $260,000 of compensation being taken into account, with individual allocations limited to 100% of pay up to $52,000.
Contribution Requirements Contributions are discretionary each year.
Employee Eligibility All employees age 21 or older who have worked one year (or two years if 100% vesting is provided). May exclude employees who work fewer than 1,000 hours per year.
Vesting Gradual vesting permitted.
Withdrawals Allowed only if certain events occur, such as termination of employment, death or disability. Subject to income tax; a 10% penalty may apply before age 59½.
Loan Feature Permitted.¹
Plan Administration IRS 5500 filings and other ERISA requirements.²
   


  1. EGTRRA 2001 made plan loans available to all plan participants.
  2. IRS 5500 filings are generally not required for one-participant plans if plan assets have never exceeded $250,000. (Exception: Filing required for final plan year, regardless of plan size.)

This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional, or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional advisor.

 

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your advisor or Pioneer Investments for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it here.

U.S. Home | Global Home | Site Map | Careers | Privacy and Security | Legal | Business Continuity
Securities offered through Pioneer Funds Distributor, Inc., 60 State Street, Boston, MA. 02109. Underwriter of Pioneer mutual funds, Member SIPC © 2014 Pioneer Investments.