Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

money-purchase plan

Read a random definition: bona fide operation

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
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.