California Stock Bonus Plan of First West Chester Corp.
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How to fill out Stock Bonus Plan Of First West Chester Corp.?
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FAQ
A stock bonus plan is a qualified, defined contribution plan. Employers have the discretion to make yearly contributions on behalf of their employees. Contribu- tions need not be made or invested in company stock but usually are, and employees have the right to take plan distributions in the form of company stock.
Whereas a stock bonus plan is not required to invest in employer securities, an ESOP must invest primarily in employer securities, to the extent that employer stock is available. The employer can contribute company stock directly to the plan.
A stock bonus plan is a defined-contribution profit sharing plan, to which employers contribute company stock. These are considered to be qualified retirement plans, and as such, they're governed by the Employee Retirement Income Security Act (ERISA).
Answer: A profit sharing or stock bonus plan is a defined contribution plan under which the plan may provide, or the employer may determine, annually, how much will be contributed to the plan (out of profits or otherwise).