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

A profit-sharing plan is a type of retirement plan in which the employer makes contributions to the plan based on the profits of the company. The contributions are discretionary and may vary from year to year based on the profitability of the company. This type of plan is often used by small businesses as a way to motivate employees to work towards the success of the company. Billy's retirement plan would fall under this category since his employer's contribution depends on the profits of the company.

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