Question

A profit sharing plan may include all of the following EXCEPT:

a. it can provide for employee pre-tax 401(k) contributions.
b. it must have company contributions that are substantial and recurring.
c. it must give special death benefits to dependent children.
d. it must have a vesting schedule.

Answer 1

A profit sharing plan may include employee pre-tax 401(k) contributions, company contributions that are substantial and recurring, and a vesting schedule. It usually does not give special death benefits to dependent children.

Step-by-step explanation:

A profit sharing plan may include employee pre-tax 401(k) contributions, company contributions that are substantial and recurring, and a vesting schedule. However, it usually does not give special death benefits to dependent children. Death benefits are generally covered by life insurance policies, rather than profit sharing plans.