Explain the difference between profit-sharing plans and COLAs. Do you believe profit-sharing plans or COLAs are more beneficial to employees? Defend your answer.
A profit sharing plan is an IRA-based account in which an employer (plan sponsor) sets up and contributes to retirement savings accounts for the company's employees. It must comply with applicable Internal Revenue codes and the Department of Labor's Employee Retirement Income Security Act of 1974 (ERISA), which is the ...