401k Profit Sharing Plan
401k Profit Sharing Plan | DefinitionA profit sharing plan is one type of defined contribution plan in which an agreement between a corporation and its employees allows its employees to share in the company's profits. In a profit sharing plan, the employer contribution is based on the company's profits rather than on a predetermined rate. In highly profitable years, the company may contribute the maximum allowable. In less prosperous years, the company may contribute a reduced amount or even nothing.
For over 1,000 additional terms and definitions please see our Investment Glossary Guide.
Related to 401k Profit Sharing Plan:
- Geographical Hedge Fund Guides
- Hedge Fund Employment Guide
- Financial Certification
- Investment Book
- Hedge Fund Terms and Definitions
Tags: 401k Profit Sharing Plan, Profit Sharing Plan, 401k Profit Sharing Plan Definition, What is a 401k Profit Sharing Plan?, Profit Sharing Plan Definition, Pension profit sharing plan