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Home > Profit Sharing / Stock Bonus Plans

Profit Sharing/ Stock Bonus Plans

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 may include a 401(k) plan.

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