Profit Sharing Your Strategic Affluence 401k $51,000 Annual Limit Profit Sharing This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing Profit sharing is the category of contributions that allows your business to make contributions to your Strategic Affluence 401k on your behalf. These contributions are a function of the profitability of your business, and are (like all contributions) optional. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing You are basically making contributions to your Plan as the role of employee (with salary deferrals) AND employer (with Profit Sharing)… NICE!!!! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing The rules for determining how much of a Profit Sharing contribution your business can make are not very complicated, but they do include a couple of variables: This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Determining Your Business’ Maximum Profit Sharing Contribution Is your business a corporate entity (taxed either as an S-corporation or C- corporation)? If it is taxed as a corporate entity, then your business can contribute up to 25% of the salary you were paid as a profit sharing contribution. In plain English, your company can contribute up to ¼ of the salary you actually received as a profit sharing contribution to your Strategic Affluence 401k. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Example: Profit Sharing For Corporate Entities If your business is taxed as an S-corp or C-corp, and you were paid $100,000 in W-2 salary during the year, your company can contribute up to $25,000 (25% of your salary) as a Profit Sharing contribution to your Strategic Affluence 401k. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Example: Profit Sharing For Corporate Entities Remember, considering your maximum salary deferral contribution is $17,500 (which we discussed earlier) PLUS the $25,000 profit sharing contribution in this example, your TOTAL (so far) is $42,500! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Determining Your Business’ Maximum Profit Sharing Contribution If your business is NOT a corporate entity but has multiple owners (such as a partnership or multi-member LLC), the formula is: (Your Company’s Total Annual Profit) x (Your Percentage of Ownership Of Your Company) x 20% In plain English, your company can make a profit sharing contribution to your Strategic Affluence 401k in the amount of 20% of your share of your company’s annual profit. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Example: Profit Sharing For Non-Corporate Multi-Owner Entities In this case: Assuming you are a 50/50 partner in your business, and your business made profits of $100,000, then your business can contribute $10,000 (20% of your portion of the business profits [$50,000]) to your Strategic Affluence 401k. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Example: Profit Sharing For Non-Corporate Multi-Owner Entities In this example, with your $17,500 salary contribution PLUS the $10,000 profit sharing contribution, your TOTAL is $27,500! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Determining Your Business’ Maximum Profit Sharing Contribution If your business is NOT a corporate entity and has only ONE owner (such as a sole proprietorship or single-member LLC)… …then your business can contribute up to 20% of the salary you were paid as a profit sharing contribution. In plan English, your company can contribute up to 1/5 of the salary you actually received as a profit sharing contribution to your Strategic Affluence 401k. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Example: Profit Sharing For Non-Corporate Single-Owner Entities In this case: If you were paid $100,000 in W-2 salary during the year, your company can contribute up to $20,000 (20% of your salary) as a Profit Sharing contribution to your Strategic Affluence 401k. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Example: Profit Sharing For Non-Corporate Single-Owner Entities Remember, considering your maximum salary deferral contribution of $17,500 PLUS the $20,000 profit sharing contribution in this example, your TOTAL (so far) is $37,500! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing You may need to review these profit sharing limits again depending on your entity type, but it’s not too complicated once you get the hang of it. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing Don’t forget that the total contributions from these examples can be increased by $5,500 per year if you’re over age 50! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing And if your spouse also receives an employee salary, his/her contributions can be added on TOP of the stated amounts in these examples! Remember, the contribution limits are per person and NOT per Plan! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing Be sure you consult with your tax advisor regarding the annual contribution deadlines, and to confirm the current guidelines which do change from time to time. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Contribution Type #2: Profit Sharing But hang on… there are still more powerful strategies we’ll cover next to get money into your Strategic Affluence 401k... This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at