Owners: Business Owner (age 68), Business Owner 2 (age 29)
18 eligible employees | 16 non-owner employees
Gross Salaries: $1,566,460
All employer contributions shown are voluntary and discretionary — there is no required contribution under this strategy.
Reward Your Team, Not the IRS
$25,778
in tax savings
| Total Profit Share (2.25% flat) | $40,892 |
| Owner's Retained Share | ($10,268) |
| Tax Deductions (32%) | ($7,183) |
| SECURE 2.0 Credits | ($18,446) |
| S-Corp FICA Savings | ($149) |
| Est. Forfeitures* (not in net cost) | ($7,656) |
Net Cost to Business
$4,846
More for You. Less for Uncle Sam.
$51,305
in tax savings
| Total Profit Share (5.0% Cross-Tested) | $127,325 |
| Owner's Retained Share | ($71,820) |
| Tax Deductions (32%) | ($36,264) |
| SECURE 2.0 Credits | ($14,000) |
| S-Corp FICA Savings | ($1,041) |
| Est. Forfeitures* (not in net cost) | ($13,876) |
Net Cost to Business
$4,200
LOWER COST + MORE RETIREMENT SAVINGS
Save $646 more AND get +$61,552 in owner retirement
✓
Both plans pass all IRS nondiscrimination requirements.
HOW IT WORKS
PlanForge Standard
A voluntary 2.25% flat profit sharing plan designed to maximize SECURE 2.0 tax credits and vesting-based forfeitures. The result: your plan pays for itself while lowering your tax bill. No contribution is ever required.
PlanForge Optimized
A voluntary cross-tested profit sharing plan. Business Owner receives up to the IRS maximum ($70,000 in 2025) while employees receive a competitive 5% contribution. The owner's retained share goes directly into their retirement account — it is not a business expense.
FINANCIAL IMPACT COMPARISON
| TYPICAL | STANDARD | OPTIMIZED |
|---|
| 5% Safe Harbor | 5% Flat PS | Cross-Tested |
| Total Profit Share | $90,872 | $90,872 | $127,325 |
| Less: Owner's Retained | ($22,818) | ($22,818) | ($71,820) |
| Less: Tax Deductions (32%) | ($29,079) | ($22,999) | ($36,264) |
| Less: SECURE 2.0 Credits | $0 | ($19,000) | ($14,000) |
| Est. Forfeitures* (not in net cost) | ($6,805) | ($17,014) | ($13,876) |
| Less: S-Corp FICA Savings | ($331) | ($331) | ($1,041) |
| Net Cost (before fee) | $38,644 | $25,724 | $4,200 |
| Plus: PlanForge Fee (20%) | — | — | $4,305 |
| Net Cost (after fee) | $38,644 | $25,724 | $8,505 |
| Your Savings vs Typical | — | $12,920 | $30,139 |
OWNER'S RETIREMENT SNAPSHOT
Typical
5% Safe Harbor
$22,818
Standard
5% Flat PS
$22,818
3.1x MORE
Optimized
Cross-Tested
$71,820
With PlanForge Optimized, Business Owner receives $71,820 — that's $49,002 more than a typical plan, deposited directly into their retirement account.
WHAT IF WE ADJUST THE EMPLOYEE RATE?
Changing the employee rate adjusts the owner's allocation and net cost. Below 5%, the gateway test caps the owner at 3× the employee rate. Click a scenario to update the illustration — click it again to return to the original view.
1.0% NHCE
Owner: $8,230
+$5,487 owner boost
Fee: $367
Saves $1,836
2.0% NHCE
Owner: $16,461
+$10,974 owner boost
Fee: $663
Saves $3,317
3.0% NHCE
Owner: $24,691
+$16,461 owner boost
Fee: $1,201
Saves $6,007
4.0% NHCE
Owner: $32,921
+$21,947 owner boost
Fee: $1,788
Saves $8,941
5.0% NHCE
Owner: $70,000
+$56,283 owner boost
Fee: $4,305
Saves $21,524
FORFEITURE BENEFIT
Employees who leave before fully vested forfeit their unvested profit sharing balance, reducing future plan costs.
Estimated forfeitures (turnover rate: 25%): Standard: $17,014 | Optimized: $13,876 (estimate only — not in Net Cost)
This illustration is based on current census data and IRS limits for the plan year shown. Actual results may vary based on final compensation, employee changes, and plan amendments. This is not tax or legal advice. Consult your tax advisor and ERISA counsel. All contributions are voluntary and discretionary. SECURE 2.0 credits subject to eligibility requirements.
Owner's retained share is not a business expense — it goes directly into the owner's retirement account and is deducted from net cost.