Destel Bergen Corporation
Types of Plans
401(k)
Age-Weighted
Money Purchase
Multiple Employer
New Comparability
Profit Sharing
Roth 401(k)
Safe Harbor 401(k)
Solo 401(k)
Plans
Age-Weighted Plans

An age-weighted profit sharing plan is a special form of a profit sharing plan. It uses both age and income as a basis for allocating employer contributions among the plan participants: the older the participant, the higher the participant's contribution percentage.

All of the requirements that apply to traditional profit sharing plans also apply to age-weighted profit sharing plans. An age-weighted profit sharing plan can have a discretionary formula and provide the employer with flexibility over the amount of contributions to be made each plan year.

Because age is a factor, this type of plan favors older employees who have fewer years until retirement than younger employees to accumulate sufficient retirement funds. Age-weighted profit sharing plans have now been largely replaced by New-Comparability profit sharing plans.


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