401(k) & Profit Sharing Plans
Profit Sharing Plans refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses. In publicly traded companies these plans typically amount to the allocation of shares to employees.

A Profit Sharing Plan can be set up where all or some of the employee's profit sharing amount can be contributed to a retirement plan.


These are often used in conjunction with 401(k) Plans.