National Pensions - CPA Oriented » Profit Sharing
Profit Sharing
A profit sharing plan is where a company contributes some of its profits to the employees. The contributions can be invested in stocks, bonds or mutual funds, and can be immediate or deferred until age 70 1/2. Profit-sharing allows for changing contributions each year. Contributions are determined by a plan formula to allocate the funds between the employees, subject to nondiscrimination testing under ERISA
