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jose works for a toy manufacturer that invests an amount equal to a certain percentage of his pay each year into a trust fund account. his firm has contributed to this optional program every year, even when they lost money. his fund usually receives the 25% maximum allowed by law. what kind of retirement program does jose have?

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tutorconsortium127

The retirement program Jose have Profit-sharing plan.

What is Profit-sharing plan?

  • Employer discretionary contributions are accepted in profit-sharing plans. The law does not specify how much you must contribute. If you can afford to contribute a certain amount to the plan for a specific year, you can. You don't have to contribute in other years.
  • A profit-sharing plan is a type of retirement arrangement that enables an employer or business owner to distribute to employees a portion of the company's profits equal to up to 25% of the payroll. Any size employer may adopt the plan, and the amount to be set aside each year is entirely up to the employer.
  • Profit-sharing programs have the drawback of preventing employees from understanding how their own efforts and decisions affect the company's profitability.

To learn more about Profit-sharing plan refer to:

https://brainly.com/question/26764420
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