Profit Sharing

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We’ve corralled the best news from inside the beltway – not only regulations, but also new legislation from Congress as well as relevant guidance from the IRS and Department of Labor. In true DWC fashion, we don’t just repackage a recitation of the rules, we provide our thoughts and commentary about what those rules mean to you.

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

10/22/24

DWC | 10/22/2024

Profit Sharing Allocation Methods

Many retirement plans are designed to include a feature that allows the plan sponsor to make a profit sharing contribution each year. Since IRS rules allow the contribution to be discretionary ...

Adam C. Pozek | 01/31/2023

Roth, Roth and More Roth – as Far as the Eye Can See

Congress seems to be in a continual love fest with two retirement concepts – automatic enrollment and Roth contributions – and SECURE 2.0 (S2) continues the trend for both. I guess it’s not ...

DWC | 05/6/2021

Designing Your 401(k) Plan for Combined Testing

Thousands of 401(k) plans are designed each year to promote savings in the most cost-effective manner. Most are established as stand-alone plans and will remain that way for their entire existence. ...

DWC | 04/15/2021

2020 Retirement Plan Tax Deductions - It's Not Too Late

DWC | 11/24/2020

DWC's Thanksgiving Dinner Prep Playlist

Facts All year long we've been leaving little rock 'n' roll Easter eggs in our Cash Balance Corner feed. ICYMI: Each post title incorporates one of our favorite songs. And for our 20th century rock ...

DWC | 11/17/2020

How Do Furloughed Employees Impact Our Plan at Year-End?

Facts Like many businesses, we had to furlough some employees earlier this year in response to the coronavirus shutdowns. We’ve been fortunate enough to bring back a few of these employees, but a ...

DWC | 11/10/2020

Are There Plan Design Options We Should Consider as Part of the Mandatory Cycle 3 Plan Document Restatement?

Facts We’ve been following your recent posts about how making even small changes to certain plan provisions can make managing the plan easier without sacrificing our objectives. Making life easier, ...

DWC | 10/13/2020

How Can We Add More Flexibility to our Standard Profit Sharing Contributions?

Facts We have made profit sharing contributions each year, and we plan to continue to do so every year that our financial situation allows. Historically, we have contributed the same percentage of ...

DWC | 09/22/2020

Can We Add a Safe Harbor Provision While Maintaining Flexibility in Contribution Costs?

Facts We currently sponsor a 401(k) plan and have been debating adding a safe harbor provision for 2021. While the idea of buying our way out of the ADP/ACP tests is appealing, we’re nervous about ...

DWC | 08/11/2020

What Are My Options (and Deadlines) for Implementing a Retirement Plan This Year?

Facts We’ve been debating implementing a 401(k) plan for 2020. After much back and forth, we’ve decided its “a go!” for this year. Since we are still in a more relaxed summer vacation mode, we’d like ...

DWC | 08/4/2020

Can We Offer Additional Matching Contributions Without Losing our Safe Harbor Status?

Facts We currently sponsor a 401(k) plan for our company. While we certainly want to be able to provide meaningful benefits to the owners, our goal is to encourage all our employees to save more for ...

DWC | 07/28/2020

Can We Offer Higher Profit Sharing Contributions to Employees Based on Performance?

Facts We’ve had a 401(k) plan for years, but we are now looking at ways to make it a more strategic part of our overall compensation package. In one of your previous Questions of the Week, you ...

DWC | 07/23/2020

Just Can't Get Enough...Savings from your 401(k) Plan

Now that we know the basics, we can apply our knowledge to (almost) real life scenarios. We will follow our fictitious company: Robert Smith, Inc., an S-corporation with no employees other than the ...

DWC | 07/21/2020

Can We Increase Profit Sharing Contributions and Decrease Salaries to Improve Testing and Save Money?

Facts We want to make job offers to some new employees and are looking strategically at our overall compensation package. Some of these candidates are seeking upwards of $130,000 which will make them ...

DWC | 04/21/2020

Should We Include Government-Mandated Coronavirus PTO When Calculating Company Contributions?

Facts We have several employees who have had to take time off from work either because of a loss of childcare or to care for affected family members due to the coronavirus. As a result of recent ...

DWC | 08/22/2019

Your Safe Harbor Actually Isn't? We've Got a Fix for That!

We’ve been through a few Corrections of the Quarter together now, and we appreciate you being along for the ride. We feel this is pretty good stuff but, at the heart of it all, we’re pension geeks ...

DWC | 06/18/2019

How Can We Improve ADP/ACP Test Results Without Offering Safe Harbor?

Facts My architectural firm sponsors a 401(k) plan. We have 38 architects and 2 administrative assistants. We currently provide a matching contribution to participants and, some years, a profit ...

DWC | 08/16/2018

Retirement Planning & Regulatory Trends You Should Be Watching

Feeling out of the loop on industry happenings this summer? DWC stays on top of what's trending, and our self-proclaimed pension geeks often offer their insights in industry publications. Get caught ...

DWC | 03/27/2018

What Are The Different Types of 401(k) Contributions And How Do They Work?

Facts Our business is considering setting up a 401(k) plan for our employees. We know that it can include both employee contributions and company contributions, but we keep hearing about all sorts of ...

DWC | 02/20/2018

How Should We Handle It If We Accidentally Overfund Our 401(k) Match?

Facts Our company sponsors a safe harbor 401(k) plan with a match, and we also make a profit sharing contribution each year. Our payroll company calculates match and profit sharing contributions ...

Adam C. Pozek | 09/17/2014

Exactly the Same but Completely Different

At the end of August, I made my first trip to Burning Man, an annual event held in the Black Rock Desert of northern Nevada. With 10 guiding principles, it involves art, music and free-spiritedness. ...

Adam C. Pozek | 04/25/2011

An In-Depth Review of Real Estate in 401(k) Plans | Part 1

“Real estate doesn't interest me. It's no doubt a great flaw in my personality, but I can't think in terms of boundaries. Those imaginary lines are as unreal to me as elves and pixies.” -- Kurt ...

Adam C. Pozek | 09/24/2010

Confession Is Good For The Soul…And The Checkbook

Over the last few weeks, I have spoken with at least four plan sponsors who just became aware that they missed the April 30, 2010 deadline to restate their plan documents for EGTRRA. For those in ...

Browse categories

DWC Developments

Industry Insights

Regulatory Round-Up

Cash Balance Corner

401(k) Q&A

Operational Overview

Lessons from Litigation

Pension Primer

Browse by Topic

Plan Document

Plan Compliance

Defined Benefits Services

Mergers, Aquisitions & Related Company Analysis

Plan Corrections

Government Audits

Investment Advisor Support

DWC Developments

Industry Insights

Regulatory Round-Up

Cash Balance Corner

401(k) Q&A

Operational Overview

Lessons from Litigation

Pension Primer

Historical Contribution & Testing Limits Chart

Form 1099-R Distribution Codes for Defined Contribution Plans

The 2025 Retirement Plan Contribution Limits

BenefitsPro Interview with Jennifer Gibbs Swets on SECURE Act 2.0

At Your Service: Calculating Length of Service

Profit Sharing Allocation Methods

"Complete Control" with Recommended Contributions

“Cover Me” with the Pension Benefit Guaranty Corporation

10 Common Retirement Plan Compliance Failures Found by the IRS

2020 DOL Enforcement Stats: Is the Glass Half Full or Half Empty?

2020 Retirement Plan Tax Deductions - It's Not Too Late

401(k) Distribution Rules: After Taking a Hardship Distribution, How Quickly Must a Participant Stop 401(k) Contributions?

Our Team

Join the 401k Experts

Profit Sharing

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

Browse categories

Subscribe to our newsletter

Only the Best Retirement Industry Content

As Featured In

Sign up to receive insights from DWC