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a profit-sharing plan allows employees to participate in the earnings of their employer. this type of plan may be irs qualified, making it eligible for the same tax treatment as other types of pension plans. some companies may offer a profit-sharing program that invests heavily in .

Sagot :

A profit-sharing plan accepts discretionary employer contributions. There is no set amount that the law requires you to contribute.

If you do make contributions, you will need to have a set formula for determining how the contributions are divided. This money goes into a separate account for each employee.

the employer calculates the sum of all of its employees' compensation  To determine each employee's allocation of the employer's contribution, you divide the employee's compensation by the total comp.

If you establish a profit-sharing plan, you:

  • Can have other retirement plans
  • Can be a business of any size
  • Need to annually file a Form 5500

business does not need profits to make contributions to a profit-sharing plan.

For more information on profit sharing plan click on the link below:

https://brainly.com/question/26764420

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