Marcia works for Telephonic Industries and participates in its supplemental retirement plan. Last year, the firm did not earn a profit. Therefore, it did not contribute to the supplemental retirement plan. This plan is a(n):

Question

Quizplus · Accepted Answer

The correct answer is a profit-sharing plan because contributions to the plan are contingent upon the company earning a profit. In the scenario described, since Telephonic Industries did not earn a profit last year, it did not contribute to the supplemental retirement plan, which is characteristic of a profit-sharing plan.

Marcia Works for Telephonic Industries and Participates in Its Supplemental