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FP$515$ OnDemand Retirement Savings and Income Planming

Question $21$ of $85$

Question ID: $1528074$

Which of these statements regarding profit$-$sharing plans is CORRECT?

A$)$ Companies adopting a profin$-$sharing plan are required to make annual contributions to the plan.

B$)$ The maximum tax$-$deductible employer contribution to a profisharing plan is $25\%$ of total indudible employee compensation.

C$)$ Company profits are required to make contributions to a profitsharing plan.

D$)$ Profit$-$sharing plans are only suitable for companies with predictable cash flows.