Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

money-purchase plan

Read a random definition: exposure of person

A quick definition of money-purchase plan:

A money-purchase plan is a type of employee benefit plan that a company sets up for its employees. It can include things like stock-purchase, savings, bonus, profit-sharing, or pension plans. The plan is only for employees, officers, and advisers of the company. The company contributes money to the plan, and the employees can usually choose how to invest it. When the employees retire, they can receive benefits from the plan.

A more thorough explanation:

A money-purchase plan is a type of employee benefit plan that is written for employees, officers, and advisers of a company. It can include various plans such as stock-purchase, savings, option, bonus, stock-appreciation, profit-sharing, thrift, incentive, pension, or similar plans. The plan requires mandatory employer contributions without regard to employer profits, and contributions are frequently stated as a percentage of employee compensation.

  • A company sets up a money-purchase plan for its employees, where the employer contributes 5% of each employee's salary to the plan every year, regardless of the company's profits.
  • Another company establishes a money-purchase plan that includes a profit-sharing component, where the employer contributes a percentage of the company's profits to the plan in addition to the mandatory contributions.

These examples illustrate how a money-purchase plan works by requiring the employer to make mandatory contributions to the plan, which are usually a percentage of the employee's salary. The plan can also include additional contributions based on the company's profits or other factors. The contributions are invested and accumulate over time, and the employee receives the benefits upon retirement or other qualifying events.

money paid | money scrivener

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.