Final answer:
A profit-sharing plan is a type of retirement plan in which the employer contributes money whenever the business has a profit.
Step-by-step explanation:
The type of plan described in the question is called a profit-sharing plan.
A profit-sharing plan is a type of retirement plan in which the employer contributes money to the plan whenever the business has a profit. The amount of the contribution is usually based on a percentage of the company's profits. The contributions are then allocated to the employees' individual accounts, which they can access upon retirement.
Profit-sharing plans are a way for employers to provide retirement benefits to their employees while also incentivizing them to contribute to the company's success. It is a flexible plan that allows employers to vary the amount of contribution based on the profitability of the business.