A profit-sharing plan is a kind of retirement plan that firms of all sizes can supply to their staff. These plans enable firms to move alongside a few of their income to staff in a tax-advantaged means. They arrive with loads of advantages for each employers and staff, together with serving to firms to draw expert staff and serving to staff to construct their retirement nest eggs. How Does a Revenue-Sharing Plan Work? When an organization presents a profit-sharing plan, it has determined to share its income with staff within the type of retirement contributions. These contributions are discretionary, which means employers can resolve annually whether or not to make them. Generally, employers use a percentage-based methodology to resolve how a lot