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Scott Brown, a senior consultant for Retirement Services at Hensler Financial, discusses profit sharing plans in this edition of Small Business Minute. A profit sharing plan enables employers to share company profits with employees tax-efficiently, with contributions made post-year-end. The plan offers significant flexibility for business owners, particularly when integrated with a 401(k) plan. Various profit sharing allocation formulas allow employers to decide how profits are distributed among employees, adhering to legal requirements. Additionally, these plans can implement a vesting schedule for employer contributions, enhancing the overall benefits for both parties.