When you choose a retirement plan for your firm, you want flexibility in plan design that addresses your needs as a plan sponsor, as well as the needs of your plan participants. Whether establishing a new plan or converting your existing plan, the ABA Retirement Funds Program (the “Program”) allows you the options and flexibility you require. This guide is intended to assist you in understanding some of your basic plan design options under the Program.  For more information and additional plan design options please click here.

Profit Sharing Plan

Employer Driven: Typically used when the firm seeks flexibility in making contributions.

  • Tax deductible contributions.
  • Contributions can be discretionary and are not required every year.
  • Eligibility/vesting flexibility

401(k) Plan

Employee Driven: Typically used when the firm seeks to offer an employee funded benefit.

  • 401(k) is a feature of a profit sharing plan.
  • Contributors are funded primarily by participants and their contributions are 100% immediately vested.
  • Contributions can be matched by the employer.
  • Safe Harbor plans available.

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