Statements regarding an age-based profit sharing plan


Task: Which of the following statements regarding an age-based profit sharing plan is correct?

A. An age-based profit sharing plan provides a greater benefit to those plan participants whose earnings exceed the Social Security wage base and who are over 50 years old.

B. An age-based profit sharing plan only provides a benefit to those plan participants whose age is within 10 years of the age of the owner of the plan sponsor.

C. An age-based profit sharing plan provides greater benefits to the older plan participants.

D. Younger plan participants in an age-based profit sharing plan usually receive the majority of the profit sharing plan allocation

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Finance Basics: Statements regarding an age-based profit sharing plan
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