The Plan is designated as a "profit sharing plan" within the meaning of U.S. Treasury Regulation section 1.401-1(a)(2)(ii). .02(a) The name and type of plan or plans (e.g., pension, profit-sharing, or welfare plan); the Employer. We've put together a guide to help you understand more about retirement income and protection planning. New proposed regulations clarify how employers should implement retirement plan eligibility rules for longterm, parttime (LTPT) employees. 401(k) as part of the Revenue Act of 1978. Prior to the passage of. Since a profit-sharing plan is a qualified retirement plan, it must comply with the ERISA rules, whether stand-alone or combined with another plan. A profitsharing plan accepts discretionary employer contributions. There is no set amount that the law requires you to contribute.