This type of plan favors key employees who are on average, 5 to 10 years older than the other employees covered by the plan. The plan works best for employers with at least five or six employees (although it can be used for employers with as few as two employees). The employer can be organized as either a "C" or "S" corporation and partnership. The plan offers all the flexibility of traditional profit sharing plans, including the flexibility of an annual contribution of anywhere from 0% to 25% of eligible payroll.

Profit Sharing Select works well for both new start-up plans and re-design of existing plans where the employer desires to change the allocation of the plan's contribution to favor certain employee groups. Those employers who currently maintain traditional profit sharing plans, money purchase pension plans or a combination of these two plans might especially want to analyze whether Profit Sharing Select would benefit them.