Retirement Services

Profit Sharing Plans

Often tied to company profits, Profit Sharing Plans are a defined contribution plan funded with discretionary employer contributions.

Advantages
  • Flexible contributions
  • Encourages employees to invest in your business’ success
Eligibility
  • All taxable businesses, government entities and tax-exempt organizations may establish a Profit Sharing Plan
  • Any employee with 1,000 hours of service within one year1 and who is age 21 or older must be covered; exclusions are permitted for certain employees
Maximum total plan contribution that the employer may deduct

25% of total eligible payroll (maximum eligible pay per participant is $275,000)

Maximum annual allocation to participant’s account

100% of participant’s total pay or $55,0002, whichever is less

Maximum annual participant deferral (cannot exceed 100% of pay)

No participant contributions allowed

Required employer contribution

Flexible contribution amount allowed each year (preset amount not required)

 

Drop in one of our branch locations or call our One Call Center at (800) 827-4522 for more information or to open an account.


1 Plans with a two-years-of-service eligibility requirement must offer immediate 100% vesting.
2 The DC annual additions limit is effective for limitation years ending in the calendar year. The dollar limit is increased by the amount of the applicable catch-up contribution.

 

Investment products are not deposits or obligations of, or guaranteed by Lake City Bank or any other bank, are not insured or guaranteed by the FDIC or any governmental agency and are subject to investment risks, including possible loss of principal invested. Past performance is not a guarantee of future results.

You are about to leave our site.

By following this link you are leaving Lake City Bank's website. Lake City Bank is not responsible for the content, links, privacy or security of the website you are going to.