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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.

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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:
  • 2022 Tax Year: Lesser of 25% of compensation or $61,000
  • 2023 Tax Year: Lesser of 25% of compensation or $66,000
Date New Account Must Be Opened By:
  • New plans must be established by the business's tax filing deadline including extensions.
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 73 (unless you turned 72 prior to January 1, 2023, then your RMD's must begin by 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

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TD Ameritrade does not provide tax advice. We suggest that you seek the advice of a tax-planning professional specifically suited to the needs of small business owners.

**Commissions, service fees, and exception fees may apply. Please review our commission and fees for details.

TD Ameritrade was evaluated against 14 other online brokers in the 2022 StockBrokers.com Online Broker Review. The firm was rated #1 in the categories "Platforms & Tools" (11 years in a row), "Desktop Trading Platform: thinkorswim®" (10 years in a row), "Active Trading" (2 years in a row), "Options Trading," "Customer Service," and "Phone Support." TD Ameritrade was also rated Best in Class (within the top 5) for "Overall Broker" (12 years in a row), "Education" (11 years in a row), "Commissions & Fees" (2 years in a row), "Offering of Investments" (8 years in a row), "Beginners" (10 years in a row), "Mobile Trading Apps" (10 years in a row), "Ease of Use" (6 years in a row), "IRA Accounts" (3 years in a row), "Futures Trading" (3 years in a row), and "Research" (11 years in a row). Read the full article.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2023 Charles Schwab & Co., Inc. All rights reserved.