What is a profit sharing plan?

Answer Profit sharing plans are offered by some companies to connect their employees' financial health to the company and offer a retirement plan. Types of profit sharing plans and investment options vary... Read More »

Top Q&A For: What is a profit sharing plan

What is a cross-tested profit sharing plan?

Cross-tested profit sharing plans--also called new comparability or multiple-tiered plans--allow employees to be grouped into multiple tiers. Contributions and benefits of the plan can then be cust... Read More »

How to Decide the Amount of Profit Sharing to Contribute to the Plan?

Profit-sharing plans are a different form of retirement plan in which companies set aside a share of sales or profit for employees. This option is a bit more flexible than traditional retirement pl... Read More »

Can money from a profit-sharing plan be transferred to a 401(k) by an employer?

The 2001 Economic Growth and Tax Relief Reconciliation Act does allow small employers to deposit profit-sharing proceeds into a 401(k) structured account. Unlike traditional 401(k)s, in which emplo... Read More »

What is a profit sharing bond?

A profit sharing bond is a security that earns a specific interest rate. The bond holder also earns dividends from the company issuing the bond.PaymentProfit sharing bonds are issued with the inten... Read More »