Retirement Plans: 401(k)s, IRAs and Other Deferred Compensation Approaches 10th Edition by Allen, Joseph Melone, Jerry Rosenbloom, Dennis Mahoney

Exercise 7

Assume that an employer has had a profit sharing plan for several years and that the reaction of the employees toward the plan has been unsatisfactory. Discuss the plan design flexibility available for a profit sharing plan that may be used by the employer to improve the employees' reaction without increasing the employer's annual cost.