Financial Dictionary

Financial Dictionary - definitons of investment, economic and financial terms

Atlantic Financial

Atlantic Financial

Investment Word

Profit Sharing Plan

Add to GoogleAtlantic Financial Investment Word RSS Feed

A profit sharing plan is a plan allows an employer to determine how much to contribute to the plan each year.
The employer's contributions are normally made from the company's annual profits. The employer's contributions are made in the form of cash or company stock. The profit sharing plan documents contain a formula for the way in which this annual contribution is allocated amongst the profit sharing participants.

Profit-Sharing Plan - definition

Back to the top of the page for Profit-Sharing Plan