Is a PSP a trust?
Is a PSP a trust in and of itself or does it have to be owned by a trust to ensure proceeds are distributed appropriately?
My understanding is that a profit sharing plan is a trust in and of itself. This means that if you set up a PSP part of that process will include structuring a trust to hold assets for participants. If you use a reputable company to help you structure a plan, they will likely handle this for you. If you’re looking to structure a profit sharing plan for your employees, one of our recommended providers that you might check out is Spark 401k (https://fitsmallbusiness.com/goto/spark-401k-main/)
Using Spark 401k you can set up a 401k plan for your company that includes a profit-sharing component to reward loyal or high-earning employees.
Hope this helps,
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