Profit Sharing Plan

Profit Sharing Plan (PSP)

Are you participating at work in a Profit Sharing Plan (PSP)? Want to diversify your current retirement assets and invest in Gold or Silver bullion? You are definitely in the right place!

You can find a broad range of Profit Sharing Plans. Many times they’re used for complimenting another existing retirement vehicle. They may not always be discussed alongside other more dominant types of defined contribution plans, but they can be a very good tax advantage for a lot of people. In this article we’ll have a look at what Profit Sharing Plans are and how they measure up when compared to other types of retirement plans like your 401Ks and IRAs. We’ll delve into precious metals investing and also how to safeguard your retirement assets with protection against currency collapses and stock market crashes.

What is a Profit Sharing Plan?

A Profit Sharing Plan is something that employers set up to give employees another form of compensation that enables them to partake of or ‘share’ (via a trustee) in company earnings with other participating employees. Employees who are participating in a Profit Sharing Plan will receive contributions from their employer into their account that will be invested and have the ability to grow tax free.

Similar to other retirement plans that are employer-sponsored, you may not be considered as being ‘fully vested’ until you are several years into your plan. Unlike a regular Money-Purchase Plan (where the contributions are pre-determined), Profit Sharing Plans have contributions that are tied into the profitability of your company.
There are restrictions defined that are typical of these plans, like no withdrawals before you turn 59 ½ You also cannot withdraw funds early unless you accept a 10% early withdrawal penalty, and your distributions will be taxed just like personal income. Profit Sharing Plans are generally placed into annuities, company stock, life insurance, or mutual funds. There are specific job conditions that will call for allowing individual employees to directly invest into their account.


The Rollover Limitations & Rules for Your Profit Sharing Plan

Only monies that have been vested are ever eligible for rollovers. Make sure you keep an eye on your vesting schedule before trying to move your retirement funds. You will find that the IRS allows you to only transfer vested account funds, and also requires your plan’s administrator to send you a personal written explanation as to how these perform tax-free.

Penalties are involved in taking cash distributions before your retirement age. Furthermore, if you’re attempting to do a rollover, it is strongly recommended that you elect to make it a direct rollover rather than an indirect rollover. The indirect rollovers come with withholding requirements. They also run a good risk for incurring penalties for early distribution.

Plan Type Sponsorship 2018 Contribution Limit Roth Option? Allow Gold Stocks? Allow Gold ETFs? Allow Gold Bullion
401(k) Private Employer $18,500 / $55,000 Yes Maybe Maybe No
Solo 401(k) Self-employed $18,500 / $55,000 Yes Yes Yes Yes
Keogh Plan Self-employed or Unincorporated Employer $55,000 No Maybe Maybe No
403(b) Government or Non-profit Employer $18,500 / $55,000 Yes Maybe Maybe No
457(b) Government or Tax-exempt Employer $18,500 / $55,000 Yes Maybe Maybe No
Simple IRA Private Employer $12,500 / $55,000 Yes Yes Yes Maybe
SEP IRA Business Owners & Self-employed $55,000 Yes Yes Yes Maybe
Profit Sharing Plan Private Employer $55,000 No Maybe No No
Money Purchase Plan Private Employer $55,000 No Maybe Maybe No
Annuity Individual None No Maybe Maybe No
ESOP Private Employer Varies Yes Maybe No No
SARSEP Private Employer $55,000 No Yes Yes Maybe
Self Directed IRA Individual $5,500 / $6,500 Yes Yes Yes Yes
Traditional IRA Individual $5,500 / $6,500 Yes Yes Yes No
Precious Metals IRA Individual $5,500 / $6,500 Yes Yes Yes Yes
Thrift Savings Plan (TSP) Government or Military $5,500 No No No No

Certain Gold Types You May Invest in With a Profit Sharing Plan

Your choices for Profit Sharing Plan investments are limited to whatever you plan custodian makes available to you. Most of the time you won’t be able to direct your investment that are made on behalf via your plan. Profit Sharing Plans do have the option legally to offer you these following investment types –

• Mutual Fund Shares
• Individual Bonds (government & corporate)
• Individual Stocks
• ETF (Exchange Traded Fund) Shares
• Options

What this really means is that you can’t invest in any sort of physical gold bullion as well as any other type of investment metals via your Profit Sharing Plan. Your only method of investing in gold via your Profit Sharing Plan, is purchasing stocks from companies that are into mining gold or buying a mutual fund that also includes stocks in gold mining. They call this method buying ‘paper gold’.

Gold is always an excellent hedge that carries a lot of growth potential. There are literally thousands of investors who purchase gold for this one reason alone. Analysts are pretty much all agreed that gold is going to continue to experience gains into the far future.

Your Choice of a Gold IRA Company to Handle a Money Purchase Plan For You

Selecting a Gold IRA Company

On this site we have reviews of gold companies for you to investigate. Because this website that is independently owned, we don’t work for nor do we own any shares in, any gold IRA companies. We conduct totally impartial reviews based on ratings and reports from reputable online sources like the BBB, BCA and Trustlink.

Rank Company BBB
(Rating A+ to F)
(Rating AAA to F)
TrustLink Storage & Admin Fees
#1 Regal Assets
0 Complaints
0 Complaints
(587 reviews) $250 per year
#2 Capital Gold Group
1 Complaint
10 complaints
(142 reviews) $250 per year
#3 Rosland Capital
7 Complaints
7 Complaints
(21 reviews) $225 per year


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