PlanForge Consulting
Profit Share Illustration
Team North Texas
2025 Plan Year
All employer contributions shown are voluntary and discretionary — there is no required contribution under this strategy.
PLANFORGE STANDARD
Reward Your Team, Not the IRS
$35,482
in tax savings
| Total Profit Share (2% flat) | $44,610 |
| Owner's Retained Share | ($2,200) |
| Tax Deductions (30%) | ($3,984) |
| SECURE 2.0 Credits | ($31,330) |
| S-Corp FICA Savings | ($168) |
| Forfeitures (actual) | ($10,001) |
| Est. Forfeitures* (not in net cost) | ($7,422) |
PLANFORGE OPTIMIZED
More for You. Less for Uncle Sam.
$43,816
in tax savings
| Total Profit Share (2.1% Cross-Tested) | $47,230 |
| Owner's Retained Share | ($3,230) |
| Tax Deductions (30%) | ($1,569) |
| SECURE 2.0 Credits | ($42,000) |
| S-Corp FICA Savings | ($247) |
| Forfeitures (actual) | ($14,000) |
| Est. Forfeitures* (not in net cost) | ($7,700) |
✓
Both plans pass all IRS nondiscrimination requirements.
HOW IT WORKS
PlanForge Standard
A voluntary 2% 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. Nathan receives up to the IRS maximum ($70,000 in 2025) while employees receive a competitive 2% contribution. The owner's retained share goes directly into their retirement account — it is not a business expense.
FINANCIAL IMPACT COMPARISON
| TYPICAL | STANDARD | OPTIMIZED | |
|---|---|---|---|
| 3% Safe Harbor | 2% Flat PS | Cross-Tested | |
| Total Profit Share | $66,914 | $44,610 | $47,230 |
| Less: Owner's Retained | ($3,300) | ($2,200) | ($3,230) |
| Less: Tax Deductions (30%) | ($20,074) | ($3,984) | ($1,569) |
| Less: SECURE 2.0 Credits | $0 | ($31,330) | ($42,000) |
| Less: Forfeitures (actual) | $0 | ($10,001) | ($14,000) |
| Est. Forfeitures* (not in net cost) | $0 | ($7,422) | ($7,700) |
| Less: S-Corp FICA Savings | ($252) | ($168) | ($247) |
| Net Cost (before fee) | $43,288 | -$3,073 | -$13,816 |
| Plus: PlanForge Fee (20%) | — | — | $2,149 |
| Net Cost (after fee) | $43,288 | -$3,073 | -$11,667 |
| Your Savings vs Typical | — | $46,361 | $54,955 |
OWNER'S RETIREMENT SNAPSHOT
Typical
3% Safe Harbor
$3,300
Standard
2% Flat PS
$2,200
1.5x MORE
Optimized
Cross-Tested
$3,230
With PlanForge Optimized, Nathan receives $3,230 — that's $1,030 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 any scenario to see the full illustration update.
1.0% NHCE
Owner: $816
+$266 owner boost
Net Cost
-$12,209
Fee: $840
Saves $4,200
2.0% NHCE (Gateway)
Owner: $1,615
+$515 owner boost
Net Cost
-$11,667
Fee: $2,149
Saves $10,743
SELECTED
3.0% NHCE
Owner: $2,275
+$625 owner boost
Net Cost
$4,560
Fee: $894
Saves $4,469
4.0% NHCE
Owner: $2,922
+$722 owner boost
Net Cost
$17,639
Fee: $908
Saves $4,542
5.0% NHCE
Owner: $9,536
+$6,786 owner boost
Net Cost
$29,713
Fee: $1,311
Saves $6,554
FORFEITURE BENEFIT
Employees who leave before fully vested forfeit their unvested profit sharing balance, reducing future plan costs.
Actual forfeitures from departed employees:
Standard (2% flat): $10,001
Optimized: $14,000
Difference: +$3,999
(already included in each plan's Net Cost)
Estimated forfeitures based on turnover rate: Standard: $7,422 | Optimized: $7,700 (estimate only — not included 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.
