Jose works for a toy manufacturer that invests an amount equal to a certain percentage of his pay each year into a trust fund account.His firm has contributed to this optional program every year, even when they lost money.His fund usually receives the 25% maximum allowed by law.What kind of retirement program does Jose have?

Question

Quizplus · Accepted Answer

A profit-sharing plan is a retirement plan in which the employer contributes a percentage of profits to a trust fund for the benefit of employees. The amount of the contribution is not fixed, but varies with the profitability of the company.

Jose Works for a Toy Manufacturer That Invests an Amount