An employee-benefit plan whereby the employer pays a portion of the company's profits to the employees. The employer's contributions are discretionary and may be (a) paid in cash or stock when profits are determined, (b) deferred to individual accounts for each employee, or (c) distributed by a combination of the two methods. Profit-sharing plans can be used as a source of retirement income or as a more short-term savings/investment vehicle.----------[ Back
Type of Defined Contibution Plan in which the employer makes substantial and recurring discretionary contributions based on an employee's current-year compensation.
Defined contribution plan characterized by the setting aside of a portion of an entity's profits in participant's accounts. (See Employee Benefit Plan.)
A qualified retirement plan established and maintained by an employer which enables employees and their beneficiaries to participate in the profits of the employer's business.
a defined contribution qualified retirement plan under which the amount of an employee's retirement benefit depends on the amount in his or her account at retirement; the distinguishing factor from other defined contribution plans is that the employer is not obligated to make contributions each year, but contributions must be substantial and recurring
a deferred compensation plan, under which the contributions are based upon the profits of the employer and frequently are completely discretionary with the employer
a Defined Contribution Plan that provides employees with contributions made by their employer
a defined contribution plan where the company makes "substantial and recurring" discretionary or fixed contributions to the plan
a defined contribution plan which the employer may determine and provide, annually, how much will be contributed to the plan
a defined contribution plan with a discretionary employer contribution
an agreement between a corporation and its employees that allows employees to share in company profits
an employee benefit plan, established and funded by a company
a plan for sharing the profits of the business with the employees
a qualified retirement plan established by an employer to provide retirement benefits for employees and their beneficiaries
a type of defined contribution retirement plan under which the employer's annual contribution is some percentage of profits for that year
a type of qualified plan that allows employees to share in the profits of the company and to use those profits to help fund their retirement
Any plan whereby a portion of a company's profits is set aside for distribution to employees who qualify under the plan.
Company-sponsored plan funded only by company contributions. Company contributions may be determined by a fixed formula related to the employer's profits, or may be at the discretion of the board of directors.
A defined contribution pension plan that uses a variable level of contributions based on company profits. Profit sharing plans allow firms to limit allocations to a pension fund in lean years. However, they suffer from lower maximum deduction limits than standard plans.
The most popular type of a qualified defined contribution plan, a profit-sharing plan permits employers to make a discretionary annual contribution of up to a maximum of 15% of pay or $30,000 to each employee's account.
A plan under which contributions made by the employer are allocated to participants pursuant to a definite predetermined formula. Contributions are generally discretionary and may be made without regard to profits.
A defined contribution plan under which the employer makes discretionary contributions (usually out of profits). A participant's retirement benefits are based on the amount in his individual account at retirement.
A type of defined contribution retirement plan that is funded primarily by employer contributions payable from the employer's profits. Contributions to a qualified plan must be substantial and recurring and cannot unduly benefit highly paid employees. Because employer contributions are based on profits, the amount of such contributions may vary from year to year.
An agreement between an employer and the employees, in which the profits of the company are shared with the employees. Typically a pot of money is established based upon the total profits of the company. This is then distributed to all employees or the designated group by some criterion, such as the employees percentage of the total wages of the group.
A plan that enables employers to share profits with employees, at the employer's discretion. The compensation may be stocks, bonds or cash and can be immediate or deferred until retirement.
A qualified retirement plan to which an employer may, in its discretion, make contributions on behalf of eligible employees.