What About Profit-Sharing Plans?

BY JOHN J. JURCAGO

I was disappointed that the article “ IRAs and 401(k)s: How to Pick the Best Plan ” ( JofA , Mar.05) did not even mention defined contribution/profit-sharing plans. These allow an owner to pick an amount each year and have limits on contributions of up to 100% of compensation vs. the 25% limit in an SEP.

John J. Jurcago, CPA
Strongsville, Ohio

Letters to the Editor
The JofA encourages readers to write letters on important professional issues in addition to comments on published articles. Because space is limited, letters submitted for publication should be no longer than 500 words. Please include telephone and fax numbers. JofA e-mail address: JOAED@aicpa.org .

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.