What is the maximum age requirement for coverage under a profit-sharing plan?

The maximum age requirement for coverage under a profit-sharing plan is typically set at age 21. This aligns with the guidelines established by the Internal Revenue Service (IRS) for qualified retirement plans under the Employee Retirement Income Security Act (ERISA).

A profit-sharing plan is designed to provide benefits to employees based on a share of the company's profits, and ERISA mandates that employees must be at least 21 years old to participate in such plans. This age requirement ensures that individuals have reached a certain maturity level and that employers can manage the administration of the plan more effectively. Establishing an age cap allows for consistency and fairness in how benefits are offered across the workforce, as well as aligning with common industry practices regarding retirement planning.

In consideration of the age options provided, being at least 21 is a fundamental requirement for plan participation, whereas the other ages listed either fall below this threshold or are not commonly recognized as minimum eligibility criteria for profit-sharing plans.