The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Question

Quizplus · Accepted Answer

The description provided indicates that Billy has a profit-sharing plan, where the contributions depend on the company's profits. A money-purchase pension plan involves fixed contributions, a stock bonus plan involves contributions in the form of company stock, a salary reduction plan involves elective contributions from the employee's salary, and a 403(b) plan is a type of retirement plan for employees of certain non-profit organizations, schools, and government entities. While some of these plans may involve employer contributions that vary based on certain factors, the description provided is most consistent with a profit-sharing plan.

The Contribution Billy Freniere's Employer Makes to His Retirement Plan