profit sharing plan
Workers get dividends
A profit sharing plan is an arrangement where a company distributes a portion of its profits to employees, typically as contributions to retirement accounts.
The amount each employee receives usually depends on salary level or length of service.
Unlike bonuses, profit sharing contributions are often tax-deferred: The company's profit sharing plan contributed 5% of my salary to my 401(k).
- piece of the piePortion of something divided
- bonusReward beyond expectation
- retirementLeaving the workforce permanently
- retirement planStrategy for post-work finances
- 401kEmployer-sponsored retirement savings
year end bonus · stock · stock options · ownership · employee · employee benefit · vesting · golden handcuffs · dividend · incentive · contribution · pension · earnings · payout · compensation · deferred compensation · benefits · workplace
- retirement plans401k, IRA, Roth IRA, 403b, defined benefit
- retirement savingsretirement savings, retirement funds, 403b, retirement account, retirement fund
- tax shelterstax shelter, 401(k), 401k, IRA, Roth IRA
profit sharing planbase pay
Compensation before additions
hourly wage · minimum wage · cost-of-living adjustment · stipend
profit sharing planexecutive compensation
Senior management earnings package
profit, sharing, profits, profited, profiting, profitable, profitability, profitably, nonprofitable