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hi Im Scott Brown senior consultant for Retirement services at Hensler financial and on this edition of small business minute were going to take a closer look at profit sharing plans [Music] [Music] a profit sharing plan is a great way for employers to allow their employees to potentially share in the profits of a company in a tax efficient way these contributions can be made by employers to their employees after the end of the year one of the primary benefits for business owners interested in adding a profit sharing plan or a profit sharing component to their 401k plan is the flexibility that the plan allows by law now lets explore this a little bit deeper first there are several different profit sharing allocation formulas which can be used this is important because it gives the employer the option of how the profit sharing dollars are allocated to employees within the confines of the law next profit sharing plans allow for a vesting schedule to be applied toward the employer con