ECONOMIC AND LEGAL ASPECTS OF PROFIT-SHARING PLANS.

Profit sharing is an economic tool that deserves careful study. But while profit sharing presents many useful opportunities to achieve a more stable economy, there are many economic, legal, and tax problems which must not be overlooked. When we talk about a profit-sharing plan, what is meant is a plan to distribute the profits of an organization among its employees in cash, annually or more often. When we talk about a profit-sharing trust or a trusteed plan, what is meant is a plan to place a share of the profits of an organization in trust for the benefit of its employees. Out of this trust fund distributions are made to members after a stated period of time, at death, retirement, in the event of sickness or disability, during economic crises, or the like. [ABSTRACT FROM AUTHOR]