What type of qualified plan insists employer contributions to be “substantial and recurring”, have non-discriminatory allocation of contributions, and is highly recommend for upstart companies?
Explanation
Answer: B - Profit sharing are qualified plans that insists employer contributions to be “substantial and recurring”, have non-discriminatory allocation of contributions, and is highly recommend for upstart companies. Additionally, profits are not required in order to make contributions, forfeitures may be reallocated among the remaining participants, and there are no limits on how much can be invested nth sponsoring company’s stock. Profit sharing plans are recommended for upstarts because profits may be nonexistent in the beginning, contributions are flexible, and earnings fluctuate from year to year.
