Retirement Plans: 401(k)s, IRAs, and Other Deferred Compensation Approaches 11th Edition by Everett Allen,Joseph Melone,Jerry Rosenbloom,Dennis Mahoney

Exercise 14

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.