About Profit Sharing Plan or Stock Bonus Plan 0
Posted on
May 14, 2009 by
megdilts
A Profit Sharing Plan or Stock Bonus Plan is a defined contribution plan under which the plan may provide, or the employer may determine, annually, how much will be contributed to the plan (out of profits or otherwise). The plan contains a formula for allocating to each participant a portion of each annual contribution. A profit sharing plan or stock bonus plan include a 401(k) plan.
Source: U.S. Department of Labor
