Profit Sharing, Annuity Retirement Plan

Retirement Plan Highway Sign

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 employeeโ€™s retirement accountย 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 companyโ€™s profitability.

Just like other retirement plans, there are restrictions: no withdrawals prior to 59 ยฝ 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 accountย 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.

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