Most Profit-Sharing Contributions are not mandatory. A plan sponsor decides each year whether to make a Profit-Sharing Contribution, typically depending on that year’s profits. If you have not yet made any Profit-Sharing deposits into your plan for 2020, there is no requirement to make a contribution in 2020.
Important Exception:
If you have a Cash Balance Plan paired with a Defined Contribution Plan, have a Money Purchase Pension Plan – or, if your plan is considered top heavy — you may be required to make an Employer Contribution into your plan for 2020. Contact your dedicated TRA Client Relationship Manager to see if these conditions apply to your plan.