Profit Sharing Plan
Employers establish this type of retirement plan as an additional form of employee compensation.
A Profit Sharing Plan retirement account is an investment vehicle that allows the employer to share (this is done through a trustee) company earnings with participating employees. For an employee that operates a Profit Sharing Plan account, the employer contributes to the employee’s retirement account that are invested and can grow tax-free.
Similar to many other retirement plans sponsored the employer, the employee will usually not be regarded as fully vested in the Profit Sharing Plan until after a couple of years into the retirement plan. This is different from a Money Purchase Plan, where the percentage of annual earnings that are contributed to plan accounts is known ahead of time. Profit Sharing Plan contributions are dependent on the company’s profitability.
Just like other retirement plans, there are restrictions: no withdrawals prior to 59 ½ years of age; early withdrawals attracts a 10% penalty; distributions are taxed as personal income.
Annuities are offered by insurance companies, and this acts as an arrangement between you and the company to provide a source of money during retirement.
For those that currently have an annuity or retirement account to do so, this page can only provide you with a brief overview of generic annuity functionality and the different ways precious metals can serve as a sort of well-diversified retirement plan strategy. It is very important that you consider carefully all of your retirement plan options before investing into a complicated financial instrument.