Traditional Profit Sharing Plan Flashcards
1
Q
Is a traditional profit sharing plan subject to QJSA?
A
no
2
Q
does an employer have to contribute every year to a traditional profit sharing plan?
A
no- just last 3 of 5 years
3
Q
Can traditional profit sharing plans invest 100% in employer stock?
A
yes
4
Q
who contributes to a traditional profit sharing plan?
A
100% employer
5
Q
Rae in service hardship withdrawals and loans to participants allowed in a traditional profit sharing plan?
A
yes
6
Q
What is the main reason an employer may want a to initiate a traditional profit sharing plan?
A
Flexibility!
-Employer can contribute 100% in employer stock
-Employer does not have to contribute every year
-Works for everyone - age-weighted plans can skew plan contributions to older participants
