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An arrangement in which an employer shares some of its profits with its employees. The compensation can be stocks, bonds, or cash, and can be immediate or deferred until retirement. Profit-sharing allows for changing contributions each year. Contributions are determined by a formula to allocate the overall contribution and distribution of accumulated funds after the retirement age. Unless the plans are defined as an elective deferral plan, the contributions are not tax deductible. Contributions and earnings can grow tax-deferred until withdrawal.

Related information about profit-sharing:
  1. Profit sharing - Wikipedia, the free encyclopedia
    Profit sharing, when used as a special term, refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that ...
  2. Profit Sharing Plans for Small Businesses
    Profit sharing plans can be a powerful tool in promoting financial security in retirement. They are a valuable option for businesses considering a retirement plan, ...
  3. Profit-Sharing Plans: How do they work?
    Your employer-sponsored profit-sharing plan provides for the tax-deferred ... A profit-sharing plan is a defined contribution plan in which your employer has ...
  4. Profit Sharing
    Are you familiar with profit sharing? It's an attractive component of a variable pay plan for employees. It shares the organization's success with employees.
  5. How to Build a Profit Sharing Plan |
    Apr 19, 2010 ... How to create a profit sharing plan that motivates your employees and drives revenue.
  6. Profit-Sharing Plan Definition | Investopedia
    A plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company's earnings.
  7. Plan Sponsor Council of America : Serving retirement plan sponsors ...
    More plans made matching contributions in 2011 than in 2010, especially small plans. Source: PSCA's 55th Annual Survey of Profit Sharing and 401(k) Plans ...
  8. Compensation: Incentive Plans: Profit Sharing
    Compensation: Profit sharing: HR Guide to Internet Resources from HR-Guide. com listing resources for compensation solutions.