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Profit
Sharing |
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.
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