PROFIT SHARING PLAN

3 Months Ended

Mar. 31, 2022

PROFIT SHARING PLAN

PROFIT SHARING PLAN

NOTE 11 – PROFIT SHARING PLAN

The Unico American Corporation Profit Sharing Plan (“Plan”) covers Company’s employees who are at least 21 years of age and have met certain service and eligibility requirements.  Unico American Corporation is the Plan sponsor and the Plan administrator.  Fidelity Management Trust Company is the Plan trustee.  The Plan is intended to be a qualified retirement plan under the Internal Revenue Code.  Under the Plan, participants have the option to elect to make 401(k) and Roth 401(k) deferral contributions that are matched at up to 4%.  Under the Plan, participants have the option to elect to make 401(k) and Roth 401(k) deferral contributions which are not matched by the Company.  In addition, pursuant to the terms of the Plan, the Company may contribute to participants an amount determined by the Board of Directors.  Beginning in 2023 the Company decided that it will not make this optional contribution.  Participants must be employed by the Company on the last day of the Plan year to be eligible for a contribution.  Participants are eligible to request a distribution of their account balance upon death, retirement, minimum required distributions, and termination of employment.  The Company modified the Plan so that all the participants immediately vested in their plan at December 31, 2021.

Contributions to the Plan are as follows:

Year ended December 31, 2021	$	171,205
Year ended December 31, 2020	$	154,331

The Company contributed $71,421 in additional profit sharing for the 2021 Plan year, which was paid to eligible employees in April 2022.