Financial Dictionary
Investment Word
Atlantic Financial
Atlantic Financial
Investment Word
Profit Sharing Plan
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.
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